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What Is the Major Limitation of Using the Payback Period

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What is the major limitation of using the payback period as a tool in capital budgeting?


Definitions:

Market Segments

The division of a market into distinct groups of buyers with different needs, characteristics, or behaviors who might require separate products or marketing strategies.

Product Synergies

The enhanced value or performance resulting from the use or combination of two or more products or services together.

Apple

A multinational technology company known for its line of consumer electronics, software, and online services.

Product Line

A group of related products manufactured or sold by a single company, often sharing common characteristics or intended for a similar market.

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