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      Question

      Which capital budgeting technique is most appropriate

      for quickly recovering the initial investment?
      A Net Present Value Correct Answer Incorrect Answer
      B Payback Period Correct Answer Incorrect Answer
      C Profitability Index Correct Answer Incorrect Answer
      D Internal Rate of Return Correct Answer Incorrect Answer
      E Discounted Cash Flow Correct Answer Incorrect Answer

      Solution

      Payback period measures time taken to recover initial outlay.

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