4. Payback and IRR rules (S5.2, S5.3) Respond to the following comments: a. I like the IRR...

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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.”

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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Question Posted: Jul 31, 2024 02:01 AM

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4. Payback and IRR rules (S5.2, S5.3) Respond to the following comments: a. I like the IRR...

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Principles Of Corporate Finance

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