Why is an investment more attractive to management

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Question

Why should managers set the required rate of return higher that the rate at which money can be borrowed when making a typical budgeting decision?

Why is an investment more attractive to management if it has a shorter payback period? Should this be the only consideration? Explain.

Why are discounted cash flow methods considered better than other methods for evaluating investments? Explain and discuss.

Reference no: EM132325721

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