Question: Should IRR and NPV be calculated to include the Interest expense on loans used to finance the investment when operating cash flow is negative? Explain

  1. Should IRR and NPV be calculated to include the Interest expense on loans used to finance the investment when operating cash flow is negative?
  2. Explain what makes NPV the best criterion to measure the value creation of an investment.
  3. Is there a change in working capital created by an investment?

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