Business, 25.11.2021 02:40, theman300045
Conclusions about capital budgeting The decision process 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?
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.
is the single best method to use when making capital budgeting decisions.
Answers: 1
Business, 22.06.2019 01:50, jjaheimhicks3419
Amanda rice has just arranged to purchase a $640,000 vacation home in the bahamas with a 20 percent down payment. the mortgage has a 7 percent apr compounded monthly and calls for equal monthly payments over the next 30 years. her first payment will be due one month from now. however, the mortgage has an eight-year balloon payment, meaning that the balance of the loan must be paid off at the end of year 8. there were no other transaction costs or finance charges. how much will amandaβs balloon payment be in eight years
Answers: 3
Conclusions about capital budgeting The decision process Before making capital budgeting decisions,...
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