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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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