Multiple Choice
The payback period rule:
A) determines a cutoff point so that all projects accepted by the NPV rule will be accepted by the payback period rule.
B) determines a cutoff point so that depreciation is just equal to positive cash flows in the payback year.
C) requires an arbitrary choice of a cutoff point.
D) varies the cutoff point with the interest rate.
E) Both A and D.
Correct Answer:

Verified
Correct Answer:
Verified
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