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Business, 27.06.2019 01:30 kaylaaguilar6538

Asignificant flaw in the payback method of capital budgeting is it is calculated using arithmetic average instead of weighted moving average. it assumes future cash flows are reinvested at the irr. it ignores cash flows following the payback period. it only calculates present values prior to comparing them to investment amount.

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Asignificant flaw in the payback method of capital budgeting is it is calculated using arithmetic a...
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