The company is somewhat unsure about the assumption of a 5.1 percent growth rate in its cash flows. At what constant growth rate would the company just break even if it still required a return of 12 percent on its investment?
Capital Budgeting Goals After completing this module, you will be able to do the following: ⦁ Outline the facts of the payback rule and some of its shortcomings. ⦁ Accounting rates of return and some of the problems with them. ⦁ Describe the internal rate of return criterion and its strengths and weaknesses. ⦁ Recognize […]