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Capital budgeting methods include payback period, net present value, internal rate of return, and profitability index.
Payback period: Measures the time required to recover the initial investment.
Net present value (NPV): Calculates the present value of cash inflows and outflows to determine profitability.
Internal rate of return (IRR): Determines the discount rate at which the NPV is zero.
Profitability index: Compares th...
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