What is a weakness of the cash payback approach


Question:

What is a weakness of the cash payback approach?

(a) It uses accrual-based accounting numbers.

(b) It ignores the time value of money.

(c) It is complicated to compute.

(d) It cannot be used if a project has uneven net annual cash flows.

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Accounting Basics: What is a weakness of the cash payback approach
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