Describe the strengths of using the payback method

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Problem 1: Describe the strengths and weakness of using the payback method in capital budgeting.

Problem 2a: Four investment appraisal techniques have been described in this chapter: 1) Accounting Rate of Return, 2) Payback, 3) Net Present Value, and 4) Internal Rate of Return.

Problem 2b: Which is the theoretically preferred investment appraisal technique? With respect to your answer to a), describe why the technique you have identi?ed is the theoretically preferred investment appraisal technique?

Reference no: EM132885124

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