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We include the net working capital (NWC) as the relevant initial cash outlay for the capital budgeting analysis. Why do we recover the NWC at
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We include the net working capital (NWC) as the relevant initial cash outlay for the capital budgeting analysis. Why do we recover the NWC at the terminal stage of the project? Explain why.
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Tell me which cash flows should not be included in the capital budgeting analysis. Explain why not.
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It is well documented that the NPV method is superior to the IRR method for capital budgeting analysis. Nonetheless, the IRR method is popularly used in practice. Explain why.
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