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In the net present value (NPV) approach to investment appraisal the discount rate is NOT intended to take into account: Returns that could be earned

In the net present value (NPV) approach to investment appraisal the discount rate is NOT intended to take into account:

  1. Returns that could be earned if the money was invested in an alternative project
  2. The decision makers relative preference for receiving money now rather than in a year's time
  3. The lifetime of the investment
  4. Interest that could be earned if the money was invested in a bank account instead of the project under consideration

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