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            | Topic: | 
            
                
                    Business
                
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            | Number of pages / Number of words: | 
            
                3 / 768             | 
        
                
    
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higher return) than investment B.
e)
- Ignore the payback method, as it does not take into account the time value of cashflows and their riskiness.
 
- Both the Profitability Index method and NPV method indicate that Investment A is superior to Investment B.
 
- The IRR for both investments exceed the required return of 15% and will result in positive NPV (maximises shareholdersâ wealth)...
 
        
        
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higher return) than investment B.
e)
- Ignore the payback method, as it does not take into account the time value of cashflows and their riskiness.
 
- Both the Profitability Index method and NPV method indicate that Investment A is superior to Investment B.
 
- The IRR for both investments exceed the required return of 15% and will result in positive NPV (maximises shareholdersâ wealth)...
 
        
        
            Essay fragment
        
    
                
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