Question: 2. Applying the discounted payback decision rule to all projects may cause: Multiple Choice some positive net present value projects to be rejected. the most

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

Multiple Choice

  • some positive net present value projects to be rejected.

  • the most liquid projects to be rejected in favor of the less liquid projects.

  • projects to be incorrectly accepted due to ignoring the time value of money.

  • a firm to become more long-term focused.

  • some projects to be accepted which would otherwise be rejected under the payback rule.

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