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09: The NPV divided by the investment amount is called the NPV/Investment ratio, it refers to the Capital Efficiency and it helps to evaluate the

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09: The NPV divided by the investment amount is called the NPV/Investment ratio, it refers to the Capital Efficiency and it helps to evaluate the Opportunity Cost of making an investment. Suppose that we have these two situations: $100 investment has an NPV of $150 and an IRR of 20% $1000 investment has an NPV of $200 and an IRR of 20% Which project has the highest capital efficiency

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