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Which of the following decision measures should capital budgeting decision makers consider? a. discounted payback b....

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Finance

Which of the following decision measures should capitalbudgeting decision makers consider? a. discounted payback b. NPV c.IRR d. MIRR e. Although NPV is considered the most important methodin the decision process, the other measures can provide differentrelevant information that is useful to the process and thus shouldbe used when appropriate

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Capital Budgeting Decision Makers consider NPV Method but other methods have some aspects which requires their usage in specific situations NPV Net Present value Method is one of the most popular methods used for capital budgeting decisions In this method cash flows received in the future are discounted with the required rate to determine the present value This present value is compared with the cost of the project It the present value is more than the cost of the investment then the proposal is accepted It helps in calculating returns in absolute terms It helps in solving capital rationing problems It    See Answer
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Which of the following decision measures should capitalbudgeting decision makers consider? a. discounted payback b. NPV c.IRR d. MIRR e. Although NPV is considered the most important methodin the decision process, the other measures can provide differentrelevant information that is useful to the process and thus shouldbe used when appropriate

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