Capital budgeting is the process by which long-term fixed assets are evaluated and possibly selected or rejected for investment purposes. The purpose of capital budgeting is to evaluate potential projects for possible investment by the firm.
Address all of the following questions in a brief but thorough manner.
What are the various methods for evaluating possible capital projects, in terms of their possible benefits to the firm? Describe the benefits and/or shortcomings of each.
What is the NPV profile and what are its uses?
The final paragraph (three or four sentences) of your initial post should summarize the one or two key points that you are making in your initial response.
Your posting should be the equivalent of 1 to 2 single-spaced pages (500–1000 words) in length.
Capital budgeting is the process of evaluating and perhaps selecting or rejecting long-term fixed assets for investment reasons. The goal of capital budgeting is to examine potential projects for the company to invest in.
Answer all of the following questions succinctly yet thoroughly.
What are the various ways for assessing potential capital projects in terms of the firm’s potential benefits? Describe the advantages and/or disadvantages of each.
What is the NPV profile and why is it important?
Your initial post’s concluding paragraph (three or four sentences) should summarize the one or two main arguments you made in your initial answer.
Your message should be between 1 and 2 single-spaced pages (500–1000 words) long.
