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Apart from the Net Present Value, the Internal Rate of Return (IRR) is also a popular capital budgeting technique. Answer the following two questions: Explain

  1. Apart from the Net Present Value, the Internal Rate of Return (IRR) is also a popular capital budgeting technique. Answer the following two questions:
  1. Explain these two terminologies: Net Present Value and Internal Rate of Return. What is the relationship between NPV and IRR?

What are the disadvantages and advantages of using the IRR method?

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