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According to the Capital Budgeting Surveys Cited in the Text

Question 366

Multiple Choice

According to the capital budgeting surveys cited in the text, in general, most financial managers of large Canadian firms:


A) Prefer to rely exclusively on payback analysis to evaluate projects.
B) Use the AAR as their primary method of evaluating capital budgeting projects.
C) Who use payback analysis use it only in conjunction with some other type of analysis.
D) Prefer to use NPV or IRR to analyze their investment projects.
E) Make use of payback analysis more heavily than discounted cash flow methods.

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