Respond to the following comments: a. I like the IRR rule. I can use it to rank

Question:

Respond to the following comments:

a. “I like the IRR rule. I can use it to rank projects without having to specify a discount rate.”

b. “I like the payback rule. As long as the minimum payback period is short, the rule makes sure that the company takes no borderline projects. That reduces risk.”

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