Correct method to use to evaluate capital investments

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Reference no: EM131826086

Financial theory (and the narrative in your textbook) indicates that NPV is the theoretically correct method to use to evaluate capital investments. Yet, surveys of financial managers consistently indicate that IRR is the most widely used technique by practitioners. Why do you suppose this discrepancy exists??

Reference no: EM131826086

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Correct method to use to evaluate capital investments : Financial theory (and the narrative in your textbook) indicates that NPV is the theoretically correct method to use to evaluate capital investments.

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