Use present value as the method of analysis

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You are the new financial manager,your grandfather is the current presiden of the firm. One of the first things you notice is your family's firm uses payback to make it's capital investment decisions. Tell your grandfather (very diplomatically as he could fire you) why he should use present value as the method of analysis. In doing so,give any advantages and disadvantage for both NPV and payback.

Reference no: EM131044643

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