Capital budgeting and evaluating projects

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Reference no: EM131871475

Discussion: Capital Budgeting and Evaluating Projects

Answer the following questions:

What is 'Net Present Value (NPV).' Explain how companies use this method when making decisions with respect to 1) independent projects and 2) mutually exclusive projects.

What is Internal Rate of Return (IRR) and how is it related to NPV? If you were evaluating a project which method would you prefer to use and why? Do they always lead to the same decision?

What other capital budgeting techniques are utilized by businesses and what are their weaknesses?

This is a discussion post! Please provide grammatically correct and typed sentences. Thanks in advance.

Reference no: EM131871475

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