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How time value of money is used in capital budgeting

Question:

Please explain how the Time Value of Money (TVM) is used in Capital Budgeting and how TVM concepts assist a company in making capital budgeting decisions. Should the company use the same discount rate for all projects? If not, what factors would determine the differences in the discount rates used?

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Finance Basics: How time value of money is used in capital budgeting

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