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[removed] IRR, because all reinvestment of funds occurs at the rate of the cost of capital and because it takes into consideration the relative size of the initial investment. |
[removed] A basic objective underlying capital budgeting is to select assets that will earn a satisfactory return. |
[removed] Modified internal rate of return (MIRR). |
[removed] That generates cash flows for the longer period of time. |
[removed] Break-even point for the project. |
[removed] It is easy to calculate and comprehend. |
[removed] $40,000 for wages and a net cash inflow of $60,000 for depreciation expenses. |
[removed] Failure to consider all relevant costs. |
[removed] Internal rate of return (IRR) of the project. |
[removed] Opportunity cost from lost sales. |
[removed] Variable manufacturing cost of the component. |
[removed] Value chain analysis. |
[removed] 4 years. |
[removed] Weighted-average cost of capital (WACC). |
[removed] Profitability index. |
[removed] A long-term planning horizon is assumed. |
[removed] Expansion option. |
[removed] Activity-based costing. |
[removed] Cash flows only. |
[removed] Are frequent. |
[removed] A pessimistic estimate in a typical scenario analysis. |
[removed] Payback period. |