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c) explain the disadvantages of each criteria; payback period, discounted payback, NPV, IRR
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- An opportunity cost may be described as: a. a foregone benefit. b. a historical cost. c. a specialized type of variable cost. d. a specialized type of fixed cost.The W.A.C.C. is a : a Composite opportunity cost metric b Simple opportunity cost metric c Risk-adjusted discount rate under all circumstances d Non-stochastic discount rate under all circumstancesIdentify and differentiate or define the types of Payback Analysis as determined by the required return.
- c) Do the Net Present Value (NPV) and internal rate of return (IRR) always agree to accept-reject decisions? And to ranking decisions? Please explain.How do the Internal-Rate-of-Return Criterion relate to the PW Analysis?Assume benefit is unchanged, how to manipulate the cost to have positive NPV (net present value)