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(c) Unfortunately, your chief executive officer refuses to accept any investment in plant expansion that do not return their original investment in four years or
(c) Unfortunately, your chief executive officer refuses to accept any investment in plant expansion that do not return their original investment in four years or less. That is, he insists on a payback rule with a cut-off period of four years. As a result, attractive long-lived projects are being turned down. The CEO is willing to switch to a discounted payback rule with the same four year cut-off period. Would this be an improvement? Explain
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