1. What is the role that the required rate of return plays in the NPV model? In the IRR model?
2. Explain how the NPV is used to determine whether a project should be accepted or rejected.
3. The IRR is the true or actual rate of return being earned by the project. Do you agree or disagree? Discuss.
4. Explain what a postaudit is and how it can provide useful input for future capital investment decisions, especially those involving advanced technology.