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What Does the Payback Method Measure

Question 20

Multiple Choice

What does the payback method measure?


A) the time needed for the cash outflow of a project to be totally recovered by profit for the year
B) the time needed for the cash outflow of a project to be totally recovered by revenue
C) the time needed for the cash outflow of a project to be totally recovered by cash inflows
D) the time needed for the cash outflow of a project to be totally recovered by profit before taxes

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