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Which of the Following Is a Disadvantage of the Payback

Question 58

Short Answer

Which of the following is a disadvantage of the payback method? a. It overvalues the initial outlay.
B) It undervalues the initial outlay.
C) It overvalues future cash inflows.
D) It undervalues future cash inflows.
E) It is easy to compute but difficult to understand.

Correct Answer:

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