Question: 38.Assuming normal projects, that is, all cash flows except the initial investment are positive. The discounted payback rule may cause a.Projects with discounted payback periods

38.Assuming normal projects, that is, all cash flows except the initial investment are positive. The discounted payback rule may cause

a.Projects with discounted payback periods in excess of the projects life to be accepted

b.Some positive net present value projects to be rejected

c.Projects to be incorrectly accepted due to ignoring the time value of money

d.Some projects with negative net present values to be accepted

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!