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:

Epigenetic

Study focusing on the impact of gene expression modifications on organismal changes, rather than changes to the genetic code itself.

Genes

Units of heredity that carry information from parents to offspring, influencing traits and characteristics.

Environments

Surroundings or conditions in which a person, animal, or plant lives or operates, affecting growth and development.

Identical Twin

One of two twins who originate from the same fertilized egg, sharing exactly the same genetic material and, consequently, typically appearing very similar.