How the concept of the time value of money is critical


Question 1. Discuss how the concept of "the time value of money" is critical when making capital investment decisions.

Question 2. Discuss "cost of capital" and its relevance when making capital investment decisions.

Question 3. Suppose that a firm must choose between two mutually exclusive projects, both of which have negative NPV. Explain how a firm can legitimately choose between two such projects.

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Finance Basics: How the concept of the time value of money is critical
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