What the two most often used methods to mitigate this bias

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Reference no: EM131562028

As has already been mentioned in this thread, the NPV - one of the most recommended tools of traditional capital budget analysis - has a peculiar bias as it is more sensitive to early cash flows and, as a result, might show wrong results when comparing capital budget projects with different economic lives of the cash flows.

What are the two most often used methods to mitigate this bias?

Reference no: EM131562028

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