Lessdesirable measures such as payback

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Reference no: EM132912075

Question: You are a CFO in a mid-sized company engaged in the manufacturing food equipment industry, which product life cycle is usually 3-5years. You are also a well trained MBA. In your job, you need to face board of directors/shareholders to evaluate of the company's investment.

1. Why you need to stress the importance of NPV.

2. And yet, you still need to continue to use lessdesirable measures such as the payback period and AAR, in addition to the NPV and IRR. Why do you think this is the case?

Reference no: EM132912075

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