The chief limitation of the simple rate of return is it ignores cash flows generated after the payback period.
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Q10: Assume the payback period for investment A
Q11: An investment of $1,000 with annual benefits
Q12: An initial investment of $2,000 with average
Q13: The future value of $1,000 invested each
Q14: The discount rate (i) used in capital
Q16: When using the net present value method,
Q17: The initial investment amount used for the
Q18: When comparing the net present value and
Q19: If the required rate of return exceeds
Q20: An example of a capital investment opportunity
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