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Which of the following statements about payback is TRUE?
Payback takes into account the time value of money
Payback is technically superior to NPV
A change in the cost of capital will affect the payback
Payback is useful as an initial screening device
sir why is it initial screening device.? why not payback takes account the time value of money??If you want to ask the tutor something directly, please use the ask the tutor forum on link below. This forum is primarily designed for students to help one another. I am not a tutor but I will answer your question. Normal payback does not take into account the time value of money. There is a type of payback called discounted payback which does take into account the time value of money but this is not the type referenced in the question. Hope this helps.
https://opentuition.com/forum/ask-acca-tutor-forums/ask-the-tutor-acca-ma/
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