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Examveda

Other factors held constant, but lesser project liquidity is because of

A. shorter payback period

B. greater payback period

C. less project return

D. greater project return

Answer: Option B

Solution(By Examveda Team)

Other factors held constant, but lesser project liquidity is because of greater payback period. Payback period in capital budgeting refers to the period of time required to recoup the funds expended in an investment, or to reach the break-even point.

This Question Belongs to Commerce >> Financial Management

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