Which of the following limitations of the Payback Period method is least significant when assessing long-term public infrastructure projects?

Question

Which of the following  limitations of the Payback Period  method is  least significant  when assessing long-term public infrastructure projects?

Accepted Answer

It requires detailed modeling of tax depreciation schedules.

Answer

It ignores the time value of money.

Answer

It does not consider benefits after the payback period.

Answer

It cannot distinguish between two projects with identical initial costs but different total NPVs.

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