Which of the following is true regarding the payback method of analyzing project performance? Multiple...

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Accounting

Which of the following is true regarding the payback method of analyzing project performance?

Multiple Choice

  • The method is helpful in identifying projects that recover the investment dollars quickly.

  • The method considers the time value of money.

  • The method includes ALL future cash flows.

  • The project with the shortest payback period will always have the highest IRR.

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