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The payback rule is generally most useful when:

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 13P: The following profit payoff table was presented in Problem 1: The probabilities for the states of...

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Question

The payback rule is generally most useful when:

Group of answer choices

credit quality is of primary importance.

liquidity is an important consideration.

mutually exclusive projects are being evaluated.

insufficient information is available to calculate profitability index.

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