The payback method, unlike the net present value method, does not ignore cash flows after the point of cost recovery.

Name: The payback method, unlike the net present value method, does not ignore cash flows after the point of cost recovery.
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The payback method focuses solely on the time it takes to recover the initial investment, ignoring any cash flows that occur after the point of cost recovery, unlike the net present value method which considers all cash flows over the project's life.

The Payback Method, Unlike the Net Present Value Method, Does