Which of the Following Is a Limitation of the Payback

question 108

Multiple Choice

Which of the following is a limitation of the payback period method?

• A)It ignores the time value of money
• B)It ignores cash flows that occur after the payback period
• C)It both ignores the time value of money and it ignores cash flows that occur after the payback period
• D)Neither that it ignores the time value of money nor that it ignores cash flows that occur after the payback period

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