Talk about NPV and IRR, as according to NPV, the company needs to wait 3 years instead of buying equipment now. Describe how both were calculated and note anything important about your findings. Then, talk about how sensitive was the analysis to the choice of discount rate? Discuss the relation between NPV and discount rate […]
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Why do most academics and financial executives regard the NPV as being the single best criterion and better than the IRR? Why do companies still calculate IRRs?
FINANCIAL MANAGEMENT – ASSESSMENT BPage 1 of 6ASSESSMENT Instruction : This Assessment is open-book. There is no time limit, and you may use your textbooks, other supporting material and and Excel financial formulae for your reference and assistance. Please answer all questions. Question 1 (15 marks) (Working with financial statements) Based on the information for […]
