Managerial Accounting for Managers
Managerial Accounting for Managers
4th Edition
ISBN: 9781259578540
Author: Eric Noreen, Peter C. Brewer Professor, Ray H Garrison
Publisher: McGraw-Hill Education
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Chapter 8, Problem 8.4Q
To determine

Concept introduction:

Capital budgeting is a technique to evaluate investment opportunities and to make investment decisions. Under the capital budgeting, there are several techniques like Net present value (NPV) analysis and internal rate of return (IRR) analysis which are used to evaluate the projects.

To indicate: why net income is not used in the NPV and IRR analysis.

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