The cash payback method is frequently used as a screening tool but it does not take into consideration the profitability of a project.

Name: The cash payback method is frequently used as a screening tool but it does not take into consideration the profitability of a project.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The cash payback method only considers the amount of time it takes to recover the initial investment, and does not account for the future cash flows and profitability of the project.

The Cash Payback Method Is Frequently Used as a Screening