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8a. Explain why it is better to make decisions about acceptance or rejection of proposed projects based on project net present value rather than on

8a. Explain why it is better to make decisions about acceptance or rejection of proposed projects based on project net present value rather than on project internal rate of return.

b. If a firm uses internal rate of return as the basis for its capital budgeting decisions, identify two things the firm should do to avoid making bad decisions due to shortcomings of the internal rate of return as a decision rule.

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