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1. We are told that in capital Budgeting Analysis, sunk costs are irrelevant. If the firm spent resources for the asset, should it not be
1. We are told that in capital Budgeting Analysis, sunk costs are irrelevant. If the firm spent resources for the asset, should it not be able to recover these costs from the project?
2. The IRR is very intuitive to understand. Why is it not superior to the NPV in Capital Budgeting Analysis? What is the principal assumption about interim cash flows in the IRR?
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