What is the fundamental premise of benefit-cost analysis

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1. Net Present Value (NPV) examines financial performance in absolute terms. How does this differ from Benefit/Cost Ratios and Internal Rate of Return (IRR)?

2. Net Present Value requires the computation of a discount rate. Discuss the challenges this presents to an organization.

3. What is the fundamental premise of Benefit/Cost Analysis? What is the value of this analysis? What are some of the risks?

Reference no: EM131643351

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