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Suppose ABC Telecom Inc.s CFO is evaluating a project with the following cash inflows. She does not know the projects initiWhich of the following statements indicate a disadvantage of using the discounted payback period for capital budgeting decisi

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The discounted payback period does not take the project's entire life into account.

Project Cash Flows (i) DF@ 7% DF@ 7% (ii) PV of Project ( (i) * (ii)) Year -1037500 300000 500000 475000 475000 1/((1+7%)^1)

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