Discuss the principal limitations of the cash payback method

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Question 1: Discuss the principal limitations of the cash payback method for evaluating capital investment proposals.

Question 2: Why would the average rate of return differ from the internal rate of return on the same project?

Question 3: Your boss has suggested that a one-year payback period is the same as a 100% average rate of return. Do you agree? Explain.

Reference no: EM132917428

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