The payback method is used only when the net cash inflows from a capital investment are the same for each period.

Name: The payback method is used only when the net cash inflows from a capital investment are the same for each period.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The payback method is used to calculate the time it takes for the net cash inflows from a capital investment to equal the initial investment, regardless of whether the net cash inflows are the same for each period or not.

The Payback Method Is Used Only When the Net Cash