4. Payback and IRR rules (S5.2, S5.3) Respond to the following comments: a. I like the IRR...
Question:
4. Payback and IRR rules (S5.2, S5.3) 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.”
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
Question Posted: