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The payback period rule: A . determines a cutoff point so that all projects accepted by the NPV rule will be accepted by the payback
The payback period rule:
A determines a cutoff point so that all projects accepted by the NPV rule will be accepted by the payback period rule.
B determines a cutoff point so that the project's IRR equals discount rate.
C requires an arbitrary choice of a cutoff point.
D payback rule does not account for time value of money.
E Both C and D
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