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If Two Projects Have the Same Risks, the Same Payback

question 129

True/False

If two projects have the same risks, the same payback periods, and the same initial investments, they are equally attractive.


Definitions:

Distributorship

An arrangement in which a business grants another business the right to sell its products or services in a particular area.

Working Capital

The disparity between a firm's immediate assets and liabilities, showcasing its short-term financial health and operational effectiveness.

Warehouse

A facility for storing goods that are being prepared for distribution or sale.

Profitability Index

A financial tool that calculates the ratio of the present value of future cash flows to the initial investment cost, determining the attractiveness of an investment.

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