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Please help me out! I am confused. If your firm's cost of capital...

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Finance

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Please help me out! I am confused.

If your firm's cost of capital is 14% (relatively high given the greater uncertainty associated with the film industry), does the outcome of your firm's investment decision using a payback period of 3 years agree with the course of action indicated by the NPV decision rule? Yes - Both investment decision rules come to the same conclusion. No - If evaluated using the NPV Decision Rule, we would reach a different conclusion than that reached using the Payback Rule

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