What criteria do companies use to evaluate investments


Problem: Write a 350-word summary, in which you answer the following questions:

a. Besides net present value (NPV) and internal rate of return (IRR), what other criteria do companies use to evaluate investments?

b. What are the disadvantages of NPV as an investment criterion?

c. How will the change in cost of capital impact the investment decision process?

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Finance Basics: What criteria do companies use to evaluate investments
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