Corporate Finance Assignment | Get Paper Help

1. Conclusions about capital budgeting:

The decision process

Don't use plagiarized sources. Get Your Custom Essay on
Corporate Finance Assignment | Get Paper Help
Just from $13/Page
Order Essay

Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm’s strategic goals.

 

Companies often use several methods to evaluate the project’s cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that apply.

a. The discounted payback period improves on the regular payback period by accounting for the time value of money,

b. For most firms, the reinvestment rate assumption in the MIRR is more realistic than the assumption in the IRR.

c. Managers have been slow to adopt the IRR because percentage returns are a harder concept for them to grasp.

True or False: Sophisticated firms use only the NPV method in capital budgeting decisions.

a. False.

b. True.

Place Order
Grab A 14% Discount on This Paper
Pages (550 words)
Approximate price: -
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Try it now!

Grab A 14% Discount on This Paper

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.