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Why is payback often used as the sole method of analyzing a proposed small project?

1. Payback considers the time value of money.

2. All relevant cash flows are included in the payback analysis.

3. It is the only method where the benefits of the analysis outweigh the costs of that analysis.

4. Payback is the most desirable of the various financial methods of analysis.

5. Payback is focused on the long-term impact of a project.

 

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  • Category:- Basic Finance
  • Reference No.:- M9870023

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