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Consider the following possible problems that arise in using alternative capital budgeting rules such as payback or NPV, etc. Choose the problems associated with the
Consider the following possible problems that arise in using alternative capital budgeting rules such as payback or NPV, etc. Choose the problems associated with the technique identified.
I. Ignores the more distant cash flows
II. Does not account for the time value of money
III. Uses accounting information rather than cashflows
What problems are associated with net present value?
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