When a company is cash poor, a project with a short payback period but a low rate of return may be preferred to a project with a long payback period and a high rate of return.

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When a company is cash poor, a project with a short payback period may be preferred as it allows the company to receive back their investment quickly, even if the rate of return may not be as high as a project with a longer payback period.

When a Company Is Cash Poor, a Project with a Short