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Business, 10.10.2019 10:30 candancejc8942

Payback is considered an unsophisticated capital budgeting because it gives explicit consideration to the timing of cash flows and therefore the time value of money. gives explicit consideration to risk exposure due to the use of the cost of capital as a discount rate. does not gives explicit consideration on the recovery of initial investment and possibility of a calamity. it does not explicitly consider the time value of money.

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Payback is considered an unsophisticated capital budgeting because it gives explicit consideration...

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