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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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