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Consider the following information: a. What is the payback period on each of the above projects? b. Given that you wish to use the payback
Consider the following information: a. What is the payback period on each of the above projects? b. Given that you wish to use the payback rule with a cutoff period of two years, which projects would you accept? c. If you use a cutoff period of three years, which projects would you accept? d. If the opportunity cost of capital is 0.21 , which projects have positive NPVs? e. "If a firm uses a single cutoff period for all projects, it is likely to accept too many shortlived projects." True or false? Complete this question by entering your answers in the tabs below
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