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    Question

    Which method in capital budgeting considers the time

    value of money but ignores cash flows beyond payback?
    A Payback Period Correct Answer Incorrect Answer
    B Discounted Payback Period Correct Answer Incorrect Answer
    C IRR Correct Answer Incorrect Answer
    D NPV Correct Answer Incorrect Answer

    Solution

    Discounted Payback Period accounts for time value but ignores long-term profitability.

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