Net present value is used for capital budgeting decisions

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1. Net Present value is used for capital budgeting decisions. Give some examples of when Net Present Value would be used?

2. A perpetuity of $300 will begin in five years. If you want to earn an annual return of 6%, what is the value of this perpetuity at the end of year 4?. What is its value TODAY?

3. IRR is also used for project and capital budgeting decisions. What does IRR tell a manager about a investment or project?

Reference no: EM132069692

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