Economics · Financial Management
Which of the following is a key disadvantage of using the payback period method for investment appraisal?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It provides a measure of risk.
- 2It considers all cash flows over the project's life.
- 3It is difficult to calculate.
- 4It ignores the time value of money.✓
Correct answer
It ignores the time value of money.
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