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    Corporate Finance Study Set 2
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    Exam 8: Net Present Value and Other Investment Criteria
  5. Question
    Firms That Make Investment Decisions Based Upon the Payback Rule
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Firms That Make Investment Decisions Based Upon the Payback Rule

Question 6

Question 6

Multiple Choice

Firms that make investment decisions based upon the payback rule may be biased toward rejecting projects:


A) With short lives
B) With long lives
C) With early cash inflows
D) That have negative NPVs

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