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Which of the following is a problem with payback period that is not a problem with discounted payback? A. Cash flows beyond the payback year
Which of the following is a problem with payback period that is not a problem with discounted payback?
A.
Cash flows beyond the payback year are ignored.
B.
Worthwhile long-lived projects may be rejected.
C.
The cut-off period is arbitrary.
D.
Negative net present value projects may be accepted.
E.
All of these are problems with both payback and discounted payback.
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