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If your firm's cost of capital is 14% (relatively high given the greater uncertainty assoclated with the film industry), does the outcome of your firm's

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If your firm's cost of capital is 14% (relatively high given the greater uncertainty assoclated with the film industry), does the outcome of your firm's investment decision using a payback period of 3 years agree with the course of action indicated by the NPV decision rule? Yes, both investment decision rules come to the same conciusion. No, if evaluated using the NPV decision rule, we would reach a different conclusion than that reached using the payback period of three years

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