The payback method has several disadvantages, among them:
A) Payback fails to choose the optimum or most economic solution to a capital budgeting problem.
B) Payback ignores cash inflows after the payback period.
C) Payback fails to choose the optimum or most economic solution to a capital budgeting problem, and it ignores cash inflows after the payback period.
D) None of these options are disadvantages.
Correct Answer:
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