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The method that fixes that flaw by discounting each inflow before adding it is the:
ADiscounted payback period
BDoubled payback period
CDivided payback period
DDelayed payback period
Answer & Solution
Correct answer: A. Discounted payback period
1. Plain payback ignores timing.
2. This version discounts the cash flows first.
3. It is the discounted payback period.
_Source: OpenStax Principles of Finance 2e, Chapter 16, How Companies Think about Investing._
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