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While undertaking the capital budgeting process, firms commonly use Internal Rate of Return (IRR) and Payback Period (PB) as primary decision rules. Explain the benefits,

While undertaking the capital budgeting process, firms commonly use Internal Rate of Return (IRR) and Payback Period (PB) as primary decision rules. Explain the benefits, and common uses, of these two decision rules. Also explain the problems associated with each of these two decisions rules, and situations when they should not be applied.

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