Applying the Discounted Payback Decision Rule to All Projects May

question 23

Multiple Choice

Applying the discounted payback decision rule to all projects may cause: 

• A) some positive net present value projects to be rejected. 
• B) the most liquid projects to be rejected in favor of the less liquid projects. 
• C) projects to be incorrectly accepted due to ignoring the time value of money. 
• D) a firm to become more long-term focused. 
• E) some projects to be accepted which would otherwise be rejected under the payback rule. 

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Definitions:

Organization's Culture

The shared values, beliefs, norms, and practices that shape the social and psychological environment of an organization.

Motivator For Change

Factors or conditions that trigger an individual, group, or organization to pursue transformation or improvement.

Organization's Culture

relates to the shared values, beliefs, norms, and practices that shape the social and psychological environment of a business or organization.

Crises

Severe situations that disrupt the normal functioning of individuals, organizations, or societies, requiring urgent and effective responses.