Solved

The Discounted Payback Rule May Cause

Question 48

Multiple Choice

The discounted payback rule may cause:


A) the most liquid projects to be rejected in favor of less liquid projects.
B) some positive net present value projects to be rejected.
C) projects to be incorrectly accepted due to ignoring the time value of money.
D) projects with negative net present values to be accepted.
E) Both B and D

Correct Answer:

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