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The finance department of a large corporation has  evaluated a possible capital project using the NPV method, the Payback  Method, and the IRR method.  The analysts are puzzled, since the NPV  ind

The finance department of a large corporation has  evaluated a possible capital project using the NPV method, the Payback  Method, and the IRR method.  The analysts are puzzled, since the NPV  indicated rejection, but the IRR and Payback methods both indicated  acceptance. Explain why this conflicting situation might occur and what  conclusions the analyst should accept, indicating the shortcomings and  the advantages of each method.  Assuming the data is correct, which  method will most likely provide the most accurate decisions and why?

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