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Evaluating Investments and Capital Expenditures

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Answer preview to Evaluating Investments and Capital Expenditures

Evaluating Investments and Capital Expenditures There are different methods used in the evaluation of capital expenditure and investments. The first one is referred to as retum on investment (ROI). The second method is called net present value (NPV). As for the third approach, it is called the intemal rate of retum, (IRR). The similarity between the three methods is that they recognize the time value of money.

Last Updatd: 02 Aug,2023