Week 5 discussion
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.
