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What is the decision rule for accepting or rejecting proposed projects when using net present value?
When going with the net present value decision rule any project with a net present value greater than or equal to zero would be acceptable. If any project with a negative net present value would be discarded.
Monte-Carlo Simulation Let us, for a shortwhile, leave the illustration for determining the price and consider a simpler illustration for understanding the Monte-Carlo method
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A bond whose payments are made in foreign currency has unknown cash flows in domestic currency. This is because the cash flows are dependent on the exchange rate
cost of capital in finance
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