Which ONE of the following statements about the payback method is true?
A) The payback method is consistent with the goal of shareholder wealth maximisation
B) The payback method represents the number of years it takes a project to recover its initial investment plus a required rate of return.
C) There is no economic rationale that links the payback method to shareholder wealth maximisation.
D) None of the above statements are true.
Correct Answer:
Verified
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