Solved: Discount rate in the net present value method, Finance Basics

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Discount rate in the net present value method

Question 1. Why does capital budgeting rely on analysis of cash flows rather than on net income?

Question 2. What is normally used as the discount rate in the net present value method?

Question 3. Have you ever heard of the replacement decision?

Question 4. Does capital budgeting deals with actual dollars?

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Finance Basics: Discount rate in the net present value method

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