Techniques used to evaluate investments


Question 1: What are the techniques used to evaluate investments and decide which projects to pursue?

Question 2: And how do you formulate decision rules and compare decisions based on these rules to decisions based on the NPV rule?

Question 3: How is the the concept of present value used in capital budgeting. Why would one accept projects with a positive NPV?

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Finance Basics: Techniques used to evaluate investments
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