1. What are some of the difficulties that might come up in actual applications of the various criteria we discussed in C

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1. What are some of the difficulties that might come up in actual applications of the various criteria we discussed in C

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1. What are some of the difficulties that might come up inactual applications of the various criteria we discussed in CapitalBudgeting?
2. Given the goal of maximization of firm value and shareholderwealth, we have stressed the importance of NPV. And yet, manyfinancial decision-makers at some of the most prominent firms inthe world continue to use less desirable measures such as thepayback period and average accounting return (AAR). Why do youthink this is the case?
3. Discuss the relationship between NPV and IRR and explain thelimitations of IRR.
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