NPV of the project A, B and rent. Capital Budgeting: Decision related to investment for long run is called capital budgeting. Capital budgeting includes the investment in the heavy machinery and information technology. Net Present Value (NPV): The net present value is differential amount between the net cash inflow from future investments and net cash outflow in the form of cost that the company has to pay at present as initial cost of the investment.

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Chapter 6, Problem 34QP

Summary Introduction

To determine: NPV of the project A, B and rent.

Capital Budgeting:

Decision related to investment for long run is called capital budgeting. Capital budgeting includes the investment in the heavy machinery and information technology.

Net Present Value(NPV):

The net present value is differential amount between the net cash inflow from future investments and net cash outflow in the form of cost that the company has to pay at present as initial cost of the investment.

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