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Your agribusiness firm has a standard form to be used when requesting funds to purchase a new capital asset. The form asks you to calculate

Your agribusiness firm has a standard form to be used when requesting funds to purchase a new capital asset. The form asks you to calculate the following metrics to characterize your proposed investment:

  • Net Present Value
  • Benefit/Cost Ratio
  • Internal Rate of Return
  • Equivalent Annual Cost

Briefly describe what is measured by each of these, and how it helps you to understand how good is the investment compared to other choices.

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