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Which of the Following Statements Is True of Capital Budgeting

Question 65

Multiple Choice

Which of the following statements is true of capital budgeting methods that consider the time value of money to evaluate independent projects?


A) They choose the projects with the highest rate of return.
B) They provide the same accept/reject decisions.
C) They choose the project with the shortest payback period.
D) They provide the highest terminal values of the projects.
E) They choose the project with multiple internal rates of return.

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