Which of the following statements about the \"payback method\" is true? The payb
ID: 2648236 • Letter: W
Question
Which of the following statements about the "payback method" is true?
The payback method considers cash flows after the payback has been reached.
They payback method does not consider the time value of money.
The payback method uses discounted cash-flow techniques.
The payback method generally leads to the same decision as other investment selection methods.
A.The payback method considers cash flows after the payback has been reached.
B.They payback method does not consider the time value of money.
C.The payback method uses discounted cash-flow techniques.
D.The payback method generally leads to the same decision as other investment selection methods.
Explanation / Answer
Which of the following statements about the "payback method" is true?
Answer : (B) They payback method does not consider the time value of money.
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