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Fundamentals of Capital Budgeting

Paper details
What is opportunity cost and why is it an important concept in the capital budgeting process? The opportunity
cost concept applies to almost every financial decision we make as individuals. Can you give an example from
your own experience?
2. What is capital rationing from the perspective of capital budgeting?
3. Give an example of a strength and a weakness of the accounting rate of return approach.

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