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6. Why is the payback rule important when analyzing financial issues? 7. If you were to make a capital-budgeting decision based on project cash flows,

6. Why is the payback rule important when analyzing financial issues?

7. If you were to make a capital-budgeting decision based on project cash flows, would you prefer to use NPV, the IRR method, the payback rule, or the discounted payback rule? Why would you sue the method that you have selected? What is the advantage of using multiple methods?

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