The payback method of capital budgeting:
a. is the amount of money an investment is worth, taking into account its cost, earnings, and the time value of money
b. calculates the rate of return from an investment by adjusting the cash inflows produced by the investment for depreciation
c. is defined as the rate of return or profit that an investment is expected to earn, taking into account the time value of money
d. is a measure of the time required to pay back the initial investment of a project
Answer: D
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