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Adelphi University/Devry
Apr-2000 - Mar-2005
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Adelphi University
Sep-2007 - Apr-2017
FIN 405 Week 3 Discussion 3
Capital Budgeting and Decision Making
Please respond to the following:
How is the NPV rule related to the goal of maximizing shareholder wealth, and under what conditions would you expect the NPV and IRR rules to return the same accept / reject decision? Identify one problem with using IRR as part of this decision-making process. What value might the financial decision maker gain by adding the profitability index to the decision-making process?
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