• It should use all the cash flows of the project in evaluating the project.
• It should consider the time value of money by discounting the expected future cash flows of the project.
• It should be consistent with the goal of shareholders wealth maximization.
• It should distinguish between two or more mutually exclusive projects and should rank them in order of their economic viability.
• It should distinguish between accepted and unacceptable projects (it should have a decision criteria).
• It should be applicable to any conceivable project independent of all other projects.
Kavungya answered the question on April 25, 2022 at 10:50
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The...(Solved)
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Required:
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