Estimation when making a capital budgeting decision


Question 1. What are the pros and cons of the decision rules for the NPV, the IRR, the MIRR, and the payback methods? Which is the most accurate method and why?

Question 2. What are sunk costs? Should they be included in the cash flow estimation when making a capital budgeting decision? Why or why not?

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Finance Basics: Estimation when making a capital budgeting decision
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