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Payback methods of capital budgeting are commonly used by business for project evaluation, though discounted cashflow techniques are recommended, and there are pragmatic factors related to the position of management which help explain this behavior. Payback methods are used by 85% of firms in the survey, and nearly half of firms answering the survey say that payback methods are important in decisions on capital budgeting. If management rewrads are linked to accounting earnings, payback methods are more likely to be used, and shareholder wealth interests are less likely to be given importance.