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Hi I just need help answering these two questions! Thank you! Your firm is considering what has been estimated to be a positive NPV project
Hi I just need help answering these two questions! Thank you!
- Your firm is considering what has been estimated to be a positive NPV project (NPV > 0).What can you say or infer about the project's payback period, discounted payback method, IRR, profitability index, and accounting rate of return(Please be thorough)?
- When a single rate is used and the divisions are very different in their risk profiles, using a single rate can lead to either anover-investmentor anunder-investmentproblem. Using an example, briefly described both of these potential problems.
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