Question: Why do firms elect rules other than NPV (e.g. payback rule)? Would the NPV rule be more appropriate? Why or why not?

Why do firms elect rules other than NPV (e.g. payback rule)? Would the NPV rule be more appropriate? Why or why not?

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Firms sometimes use rules other than Net Present Value NPV for project evaluation due to several reasons However NPV is generally considered the more ... View full answer

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