What is “capital budgeting” and why do companies need to do this?
Responses
1.What is “capital budgeting” and why do companies need to do this? Explain the NPV analysis and provide an example. How is the IRR related to the NPV analysis?
- Discuss some of the other capital budgeting tools (beyond the NPV and IRR). Pick one and provide a numerical example of how to use it. For the tool you chose, what are its strengths and weaknesses?
Subject: Management,
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