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What is the net present value (NPV) decision rule to accept a capital budgeting project? Accept if: NPV $0 Accept if: NPV $0 Accept if:
What is the net present value (NPV) decision rule to accept a capital budgeting project? Accept if: NPV $0 Accept if: NPV $0 Accept if: NPV = $0 Payback period = Initial investment required / Net total cash inflow True False What is the required payback period? The average length of time for a company to recover its initial investment on a project. The length of time that it takes for a project to recover its initial cost from the undiscounted net cash inflows that it generates. The target length of time for a company to recover its initial investment on a project. The length of time for a company to recover its initial investment on a project
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