Only oneWhich of the following features is characteristic of a payback period? .Identify this feature.

Question

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The characteristic feature of a payback period is that it ignores cash flows beyond the payback period. It simply calculates the time required to recover the initial investment. Options A, C, and D all involve discounting and/or considering the time value of money, which are not specific to payback period calculations.

Only OneWhich of the Following Features Is Characteristic of a Payback