The NPV Rule Is Preferred to the Discounted Payback Period

question 90

Multiple Choice

The NPV rule is preferred to the discounted payback period as a project evaluation criterion because the discounted payback period rule ignores:
I.The initial cost
II.The timing of cash flows prior to the discounted payback period
III.Any cash flows beyond the discounted payback period

• A)III only
• B)I and II only
• C)I and III only
• D)II and III only

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