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Dhahran Roads (A) - Capital Budgeting

I know that the company should accept the project, but what about the time value of money? If you include this into the analysis would you still accept the project or reject it and why?


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If you look at the attached file, there is the NPV calculation and the IRR calcuation. Both these calculations take into effect the time value of money. The time value of money is taken into account when we discount the cash flows. When ...

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The posting has the solution to the capital budgeting case of Dhahran Roads (A)