NPV and IRR are two DCF methods for analysing a proposed capital investment. Briefly explain how each method can be used to make capital investment decisions. Discuss the strengths and weaknesses of each.

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
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NPV and IRR are two DCF methods for analysing a proposed capital investment. Briefly explain how each method can be used to make capital investment decisions. Discuss the strengths and weaknesses of each.

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