Which statements about the payback method is true

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Question 1: Which ONE of the following statements about the payback method is true?

Option 1: The payback method is consistent with the goal of shareholder wealth maximization

Option 2: The payback method represents the number of years it takes a project to recover its initial investment plus a required rate of return.

Option 3: There is no economic rational that links the payback method to shareholder wealth maximization.

Option 4: None of these statements are true.

Reference no: EM132562959

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