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Chapter 5: NPV and other Investment Criteria, NPV = +-C0 + C1÷(1+IRR)^1 +…
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Capital Budgeting Techniques/Investment evaluation techniques
- Net Present Value (NPV)
- Book rate of return
- Payback period
- Discounted payback period
- Internal Rate of Return (IRR)
NPV & IRR are commonly used but IRR can have its pitifalls.
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