1. Why has the company used both net present value and internal rate of return, but ignored...
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1. Why has the company used both net present value and internal rate of return, but ignored the payback, when undertaking the prefeasibility study?
2. What steps can the company take to ensure that there is less likelihood that incorrect estimates will result in the project not having an acceptable net present value and internal rate of return?
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...
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1 The payback method of evaluation does not incorporate cash flows after the payback period Given th...View the full answer
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