Explain investment opportunity schedule, Financial Management

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What is the investment opportunity schedule (IOS)?  How does it help financial managers make business decisions?

The investment opportunity schedule depicts graphically proposed capital budgeting projects showing the IRR and dollar amount of investment for every project.  This assists the financial manager make business decisions as the investment opportunity schedule and the marginal cost of capital schedule can be plotted together along with those projects on the IOS schedule above the marginal cost of capital being acceptable.


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