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A Project's Payback Period Is Determined to Be 4 Years

Question 70

Multiple Choice

A project's payback period is determined to be 4 years.If it is later discovered that additional cash flows will be generated in years 5 and 6,then:


A) the project's payback period will be reduced.
B) the project's payback period will be increased.
C) the project's payback period will be unchanged.
D) the discount rate must be known to determine whether the payback period changes.

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