Which of the following is a pitfall of the payback


Which of the following is a pitfall of the payback rule?

a. It gives equal weight to cash flows before cutoff
b.it ignores cash flows after cutoff
c.it biases the firm against long term projects that might be very profitable
d.all the above are pitfalls

 

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Finance Basics: Which of the following is a pitfall of the payback
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