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Techniques based on accounting earnings and accounting rules are sometimes used - though economists consider this to be improper - such as the accounting rate of return, and "return on investment." Simplified and hybrid methods are used as well, such as payback period and discounted payback period.
|Contents |
|[hide] |
|1 Net present value |
|2 Internal rate of return |
|3 Equivalent annuity method |
|4 Real options |
|5 Ranked Projects |
|6 External links and references |
[pic][edit] Net present value
Main article: Net Present Value
Each potential project's value should be estimated using a discounted cash flow (DCF) valuation, to find its net present value (NPV)...
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