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Question 5 15 marks GCC uses the following criteria to make capital investment decisions: Effect on earnings per share (must be positive) Payback period (must

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Question 5 15 marks GCC uses the following criteria to make capital investment decisions: Effect on earnings per share (must be positive) Payback period (must be less than six years) Internal rate of retum (must be less than 12%) Net present value (must be positive at a 12% discount rate) 5.1. What are the advantages and disadvantages of each of these measures? (12) 52. Why do you think GCC uses all of these measures rather than just one of them? (3)

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