Question: The payback method: 2 9 : 4 9 Multiple Choicedetermines a cutoff point so that all projects accepted by the NPV rule will be accepted

The payback method:

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Multiple Choicedetermines a cutoff point so that all projects accepted by the NPV rule will be accepted by the payback period rule.determines a cutoff point equal to the point where all initial capital investments have been fully depreciatedrequires an arbitrary choice of a cutoff point.varies the cutoff point with the market rate of interest.is irrelevant to the accept or reject decision.

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