Application of an irr approach in project analysis

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What are some of the difficulties that might occur with the application of an IRR approach in project analysis. Why do they occur? What can you do to avoid the problems of an IRR approach? Explain fully.

Explain how inflation impacts capital budgeting analysis. Why do we care? How is NPV impacted if you neglect to adjust for inflation in the cash flows when you use a discount rate based upon market (nominal) rates. Does it make the project look better or worse? Explain fully

Reference no: EM133275438

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