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Which of the following statements is not correct? Payback period means how long it takes to recover initial cost of a project. Payback period ignores
Which of the following statements is not correct?
Payback period means how long it takes to recover initial cost of a project. | ||
Payback period ignores cash flows beyond the cutoff date. | ||
IRR is the discount rate that makes the NPV = 0. | ||
NPV and IRR will always give the same decision for new projects. |
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