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Discuss the advantages and disadvantages of Net Present Value, Internal Rate of Return, & the Payback...

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Finance

Discuss the advantages and disadvantages of Net Present Value,Internal Rate of Return, & the Payback Method. Is one betterthan the others?

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Net Present Value NPV Advantages It considers time value of money Both the cash outflows investment in a project and inflows of an project are considered Importance is given to profitability and the risk associated with the projects Positive NPV helps in maximizing the shareholders value and projects with higher NPV values are accepted Disadvantages Mutually exclusive projects are the set of projects out of which only one project should be considered If the investment amount of two    See Answer
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Discuss the advantages and disadvantages of Net Present Value,Internal Rate of Return, & the Payback Method. Is one betterthan the others?

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