Question: Rossiter Restaurants is evaluating several new projects. Applying the discounted payback decision rule to all projects may cause: A) some positive net present value projects
Rossiter Restaurants is evaluating several new projects. Applying the discounted payback decision rule to all projects may cause:
A) some positive net present value projects to be rejected
B) some projects to be accepted which would otherwise be rejected under the payback rule
C) Projects to be incorrectly accepted due to ignoring the time value of money
D) The most liquid projects to be rejected in favor of less liquid projects.
E) a firm to become more long-term focused.
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