how the cost of capital serves as a screening tool when dealing with the net present value method and the internal rate of return method.
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- What is the equation to calculate the accounting rate of return?Explain how the cost of capital serves as a screening tool when using (a) the net present value method and (b) the internal rate of return method.Explain how the cost of capital may be used as a screening tool when applying the net present value technique to financial statements.