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Question 1: a) Describe what net present value (NPV) is. - 9 - b) Give the steps involved in the calculation net present value (NPV).

Question 1:

a) Describe what net present value (NPV) is. - 9 -

b) Give the steps involved in the calculation net present value (NPV).

c) What is the net present value (NPV) be used for?

d) How does this relate to the firms market value? e) What are the acceptance criteria for the net present value (NPV) method?

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