Question

The payback method for the measurement of return on investment

a.

gives a correct picture of profitability.

b.

underemphasises liquidity.

c.

does not measure the discounted rate of return.

d.

takes into account the cash inflows after the recovery of investments.

Answer: (c).does not measure the discounted rate of return.

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Q. The payback method for the measurement of return on investment

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