Capital Rationing Compare and contrast the Internal Rate of Return (IRR), the Net Present...

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Capital Rationing      Compare and contrast the Internal Rate of  Return (IRR), the Net Present Value (NPV) and Payback approaches to  capital rationing. Which do you think is better? Why? Provide examples  and evidence from two articles from ProQuest to support your position.  Your post should be XXXXXXXXXXwords in length.

Soumi · Accepted Answer

Running head: CAPITAL BUDGETING		1
CAPITAL BUDGETING		2
CAPITAL BUDGETING
Capital Budgeting is the analysis of various capital investment and the return from the project and various tool are used in capital budgeting. The rate at which the present value of outflows equals the present value of inflows is referred to as Internal Rate of Return (IRR). According to Abor (2017), the rate of return from a project should be greater than the Internal Rate of Return. The absolute difference between present value of outflows and inflows is Net Present Value (NPV).

Capital Rationing Compare and contrast the Internal Rate of Return (IRR), the Net Present Value (NPV) and Payback approaches to capital rationing. Which do you think is better? Why? Provide examples...

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