Capital budegting techniques, NPV and why NPV
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What are the techniques used to evaluate investments and decide which projects to pursue?
And how do you formulate decision rules and compare decisions based on these rules to decisions based on the NPV rule?
How is the the concept of present value used in capital budgeting. Why would one accept projects with a positive NPV?
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Solution Summary
Alternative techniques of capital budgeting
Decisions based on NPV
why the decision is made on NPV basis
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