Which of the following is not a problem with the original Payback Investment Rule?

a$.$ Ignores cash flows after the payback period

b$.$ Less accurate for small investment decisions

c$.$ Ignores the time value of money

d$.$ Lacks an economic reason for its decision criteria

$6$

$16.$ Below is an NPV profile graph with its axes title removed. Based on the information nomvidad halnw which of the frllowing is most correct?

a$.$ Using the IRR decision criteria, we should evaluate the project using a required return of $13\mathrm{.}80\%$ because it is the more conservative of the two IRRs. That way, if the project has a positive NPV while using this IRR we are very confident that it will be profitable.

b$.$ Using the NPV decision criteria, the project should not be undertaken because there is a potential loss from $5\mathrm{.}79\%$ to $13\mathrm{.}80\%.$ If there is a negative expected return from a project, it should not be undertaken.

c$.$ Using the IRR decision criteria, we cannot decide what the project's required return is because it has two IRR's: One at $5\mathrm{.}79\%$ and another at $13\mathrm{.}80\%.$

d$.$ Using the Payback Rule we would not undertake the project because we do not have our pre$-$specified cutoff length for projects.