Which false concerning payback method of capital budgeting

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Question 1: Which of the following is false concerning the payback method of capital budgeting ?

1-its major strength is that it is easy to use

2-shorter payback periods give an organization more flexibiltiy

3-it does not consider cash flows after the recovery of the initial investment

4-it uses the accrual accounting rate of return

5-the payback method highlights liquidity

Reference no: EM132510976

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