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Explain the investment opportunity schedule

Explain the investment opportunity schedule (IOS)? How does it help financial managers take business decisions?
The investment opportunity schedule illustrates graphically proposed capital budgeting projects depicting the IRR and dollar amount of investment for each of the project. This helps the financial manager take business decisions since the investment opportunity schedule and the marginal cost of capital schedule can be together plotted, with those projects onto the IOS schedule above the MCC being acceptable.

 

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