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    Fundamentals of Corporate Finance Study Set 7
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    Exam 8: Net Present Value and Other Investment Criteria
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    Firms That Make Investment Decisions Based on the Payback Rule
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Firms That Make Investment Decisions Based on the Payback Rule

Question 85

Question 85

Multiple Choice

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


A) with short lives.
B) with long lives.
C) with late cash inflows.
D) that have negative NPVs.

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