Question: 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.

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?

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