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1. What are the four capital budgeting decision criteria? 2. Consider a situation where a firm carefully performs capital budgeting analysis and selects a project

1. What are the four capital budgeting decision criteria?

2. Consider a situation where a firm carefully performs capital budgeting analysis and selects a project with a high, positive NPV. Three years later, the project is terminated early and the company has lost significant money on the project. Does this mean that their capital budgeting process is flawed? Explain.

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