Explain the usefulness of the cost of capital

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All these questions must be substantiated with great abundance of information

Question 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?

Question 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: EM132431355

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