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Capital Budgeting Decision Measurement Methods Prior to deciding on which long-term project/investment is most suitable,...

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Accounting

Capital Budgeting Decision Measurement Methods

Prior to deciding on which long-term project/investment is most suitable, a company is going to analyze different options by considering various capital budgeting decision measurement methods. Some of these measurement methods include but not limited to payback period, discounted payment period, net present value, and internal rate of return. If you have a business and would like to invest in equipment that costs $1,000,000, which measurement method would you choose and why?

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