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    Question

    Which of the following is a non-discounting technique of

    capital budgeting?
    A Net Present Value (NPV) Correct Answer Incorrect Answer
    B Internal Rate of Return (IRR) Correct Answer Incorrect Answer
    C Payback Period Correct Answer Incorrect Answer
    D Profitability Index Correct Answer Incorrect Answer

    Solution

    The Payback Period method calculates the time required to recover the initial investment. It does not consider the time value of money, making it a non-discounting technique.

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