Three quantitative methods used in making capital budgeting decisions are pay- back period, accounting rate of return,
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Three quantitative methods used in making capital budgeting decisions are pay- back period, accounting rate of return, and discounted cash flows. Two variations of the discounted cash flow method are the internal rate of return method and the net present value method. Discuss the merits of each method, and compare the two variations of the dis- counted cash flow method.
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