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    Question

    Which of the following statements is true for the

    Payback Period method?
    A It ignores cash inflows after the payback period. Correct Answer Incorrect Answer
    B It always leads to optimal investment decisions. Correct Answer Incorrect Answer
    C It is the most reliable method for capital budgeting Correct Answer Incorrect Answer
    D It considers time value of money. Correct Answer Incorrect Answer

    Solution

    The correct answer is A

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