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Finance ABC

24. Capital Budgeting: Payback Period and NPV

Welcome back to Finance ABC! Today, we’re diving into a practical area of finance that’s essential for businesses of all sizes: capital budgeting. We’ll cover two of the most widely used methods within capital budgeting—payback period and net present value, or NPV. If you’ve ever wondered how companies decide which projects to invest in and which ones to pass on, today’s episode is for you.

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