1. Of all the methods for evaluating the data (techniques of capital budgeting), which one do you think you would be most likely to use in the future and why? 2. How does depreciation factor into capital investment decisions?
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1. Of all the methods for evaluating the data (techniques of capital budgeting), which one do you think you would be most likely to use in the future and why?
2. How does
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- Explain how a net present value (NPV) profile is used to compare capital projects. How does this profile compare to that of internal rate of return (IRR)? How does reinvestment affect both NPV and IRR?Explain how a net present value (NPV) profile is used to compare capital projects. How does this profile compare to that of internal rate of return (IRR)? How does reinvestment affect both NPV and IRR? Support your rationale with at least one citation from the literature.How to use internal rate of return to make capital investment decisions.
- Should financing costs be included as an incremental cash flow in capital budgeting analysis? Explain fully.Need help calculating: A. Economic value added and B. Return on CapitalWhat is the difference between capital budgeting decisions and capital structure decisions? Which of these two do you think is more important and why?
- Which of the following are present value methods of analyzing capital investment proposals? a. internal rate of return and average rate of return b. average rate of return and net present value c. net present value and cash payback d. net present value and internal rate of returnDiscuss the payback period, NPV (net present value), and IRR (internal rate of return) methods for capital budgeting analysis. What result does each method provide the user? What are the limitations of each of these methods? Which method would you find most useful in making the best investment decisions for your business and why?Explain briefly what working capital and working capital management are and what they do. Explain the link between current asset policy and liquidity, profit, and risk as well as any other relevant factors. So, which policy do you believe to be the most beneficial?
- What is the Capital Asset Pricing Model and explain the variables used to calculate the required rate of return under this model?Briefly explain the meaning of working capital and working capital management. Also explain the relationship of current asset policy with liquidity, profit and risk. Which policy do you think is good?Explain the term Return on Invested Capital?