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Examveda

Other factors held constant, greater project liquidity is because of

A. less project return

B. greater project return

C. shorter payback period

D. greater payback period

Answer: Option C

Solution(By Examveda Team)

Other factors held constant, greater project liquidity is because of shorter payback period. The payback period is the cost of the investment divided by the annual cash flow. The shorter the payback, the more desirable the investment.

This Question Belongs to Commerce >> Financial Management

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