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Unformatted text preview: net 560) ?
(net 400) IRR
• How to set the discount rate for NPV calculation? Bank interest rate? Inflation? • People have different credit limits. Getting $2 is harder than getting $1. • Money has opportunity cost. If you can finance $2k, you can put the extra $1k to
other investments. (e.g. Investment C 2 times
NPV = 692 (2%) or 546 (10%))...
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This document was uploaded on 01/28/2014.
- Fall '14