The discounted payback rule will give the same result as the NPV rule when the cut-off rule is infinite the discount rate is the same they will never give the same result the cut-off rule is zero
The discounted payback rule will give the same result as the NPV rule when the cut-off rule is infinite the discount rate is the same they will never give the same result the cut-off rule is zero
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The discounted payback rule will give the same result as the NPV rule when
the cut-off rule is infinite
the discount rate is the same
they will never give the same result
the cut-off rule is zero
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