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2. Define each of the following investment rules and discuss any potential shortcomings of each. In your definition, state the criterion for accepting or rejecting

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2. Define each of the following investment rules and discuss any potential shortcomings of each. In your definition, state the criterion for accepting or rejecting independent projects under each rule. a. Payback period. (6 points) b. Internal rate of return. (6 points) c. Net present value. (6 points) 3. U.S. Treasury bonds are not rated. Why? Junk bonds are not rated. Why? (10 points)

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