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Which one of the following statements about the payback method of capital budgeting is correct? A. The payback method will lead to the same decision as other methods of capital budgeting. B. The payback method uses discounted cash flow techniques. c. The payback method considers cash flows after the payback has been reached. D. The payback method does not consider the time value of money.

Which one of the following statements about the payback method of capital budgeting is correct? A. The payback method will lead to the same decision as other methods of capital budgeting. B. The payback method uses discounted cash flow techniques. c. The payback method considers cash flows after the payback has been reached. D. The payback method does not consider the time value of money.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which one of the following statements about the payback method of capital budgeting is correct? A. The payback method will lead to the same decision as other methods of capital budgeting. B. The payback method uses discounted cash flow techniques. c. The payback method considers cash flows after the payback has been reached. D. The payback method does not consider the time value of money.
Transcribed Image Text:Which one of the following statements about the payback method of capital budgeting is correct? A. The payback method will lead to the same decision as other methods of capital budgeting. B. The payback method uses discounted cash flow techniques. c. The payback method considers cash flows after the payback has been reached. D. The payback method does not consider the time value of money.
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