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The Decision Rule for the Payback Method of Investment Appraisal

Question 16

Multiple Choice

The decision rule for the payback method of investment appraisal is:


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.

Correct Answer:

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