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What Is the Decision Rule for the Payback Method of Investment

Question 2

Multiple Choice

What is the decision rule for the payback method of investment appraisal?


A) choose the project with the longest payback period.
B) choose the project with the shortest payback period.
C) choose the project where the payback period is longer than a hurdle period.
D) below a maximum period, accept the project with the shortest payback period.

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