MGMT 640 Session 6 DQ

  1. 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 the relationship between NPV and discounted payback period. How would you use these concepts in evaluating the economic value of your course of study at UMUC?

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