Which of the following is NOT a weakness of the payback method of capital budgeting?
A) There is no EXPLICIT time value of money calculation.
B) There is no attempt to distinguish between cash flows in the earlier years and cash flows in the later years.
C) It does not given any consideration to cash flows expected to occur beyond the payback period.
D) All of the above are weaknesses with the payback period method.
D
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