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Chapter 11 mentions several methods to evaluate an investment opportunity or project using capital budgeting techniques. For a business or investor most interested in limiting
Chapter 11 mentions several methods to evaluate an investment opportunity or project using capital budgeting techniques.
For a business or investor most interested in limiting liquidity risk, briefly explain which technique discussed they should favor more? Explain why this method is preferred relative to the others discussed in chapter 11.
Note - by liquidity risk, we mean the return of principal investment (getting paid more quickly) as quickly as possible. Ie. Some investors prefer getting paid more quickly to earning a higher rate of return
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