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Please respond to the following:

How is the NPV rule related to the goal of maximizing shareholder wealth,

and under what conditions would you expect the NPV and IRR rules to return the same accept / reject decision? Identify one problem with using IRR as part of this decision-making process. What value might the financial decision maker gain by adding the profitability index to the decision-making process?

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The NPV rule states that managers to invest in projects with positive NPV. This means that the project will give a positive... View the full answer

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