Why is this method preferred over others such payback period
Problem
Present value is used extensively by managers who are reviewing proposed projects. Why is this so, and why is this method preferred over others such as payback period when evaluation a new project?
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Calculate the variance associated with each of the reasons you gave. How if at all, might this information be used in managing the group practice?
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Why is this so, and why is this method preferred over others such as payback period when evaluation a new project?
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