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Explain the usefulness of the cost of capital

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Reference no: EM132423411

All these questions must be substantiated with great abundance of information

1. Why are discounted cash flow methods (using present value) to make capital investment decisions superior to other methods that do not use present value?

2. Explain the usefulness of the cost of capital as a review tool when using discounted cash flow methods. How is the cost of capital used in the internal rate of return method?

Reference no: EM132423411

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