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A corporate organisation may incur a huge capital expenditure with the motive(s) of expanding operations and/or replacing a fixed asset. As a result of this,

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A corporate organisation may incur a huge capital expenditure with the motive(s) of expanding operations and/or replacing a fixed asset. As a result of this, several appraisal techniques have been developed to help corporate organisations make the best investment decisions to increase the shareholders' wealth. However, among the various appraisal techniques the "Net Present Value (NPV) is considered as the king of capital budgeting." Critically examine this statement. 2

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