Question: 1. Why are discounted cash flow methods (using present value) for making capital investment decisions superior to other methods that do not use present value?

1. Why are discounted cash flow methods (using present value) for making capital investment decisions superior to other methods that do not use present value?

2. Explain the usefulness of cost of capital as a review tool when using discounted cash flow methods. How is the cost of capital used in the internal rate of return method? It must have at least three paragraphs of at least 5 complete sentences each and it must contain a theoretical or conceptual component and another for personal analysis

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