MANAGERIAL ACCOUNTING FOR MANAGERS EBOOK
MANAGERIAL ACCOUNTING FOR MANAGERS EBOOK
6th Edition
ISBN: 9781264445615
Author: Noreen
Publisher: MCG
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Chapter 7, Problem 7.4Q
To determine

Concept introduction:

Capital budgeting is a technique to evaluate investment opportunities and to make investment decisions. Under the capital budgeting, there are several techniques like Net present value (NPV) analysis and internal rate of return (IRR) analysis which are used to evaluate the projects.

To indicate: why net income is not used in the NPV and IRR analysis.

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