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1. What are the advantages and disadvantages of the payback and average rate of return methods for evaluating capital budgeting decisions? 2.If you invested money

1. What are the advantages and disadvantages of the payback and average rate of return methods for evaluating capital budgeting decisions?

2.If you invested money in a savings account would you prefer one with interest compounded monthly or yearly? Develop an example to support your answer.

3.Explain why projects with positive internal rates of return have positive net present values.

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