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A . Briefly outline the advantages of the net present value method over the basic payback period. Explain the concept of capital rationing. Refer to

A.Briefly outline the advantages of the net present value method over the basic payback period.
Explain the concept of capital rationing. Refer to both soft capital rationing and hard capital
rationing.
Briefly explain why the following elements are not considered as relevant cash flows in project
appraisal.
i. Depreciation charge.
ii. Apportioned fixed cost.

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