The Payback Period Rule

question 37

Multiple Choice

The payback period rule

• A)varies the cut-off point with the interest rate.
• B)determines a cut-off point so that all projects accepted by the NPV rule will be accepted by the payback period rule.
• C)requires an arbitrary choice of a cut-off point.
• D)varies the cut-off point with the interest rate and requires an arbitrary choice of a cut-off point.

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Definitions:

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