1.Explain the following key terms: Capital budgeting decision Internal rate of return (IRR) Profitability index payback period...
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Question:
1.Explain the following key terms:
Capital budgeting decision
Internal rate of return (IRR)
Profitability index payback period
Opportunity cost of capital
Mutually exclusive projects
Book rate of return
(accounting rate of return)
Net present value
Capital rationing
Straight-line depreciation
Depreciation tax shield
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