Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that apply.   Because the MIRR and NPV use the same reinvestment rate assumption, they always lead to the same accept/reject decision for mutually exclusive projects.   The discounted payback period improves on the regular payback period by accounting for the time value of money.   For most firms, the reinvestment rate assumption in the MIRR is more realistic than the assumption in the IRR.     B.                   ? is the single best method to use when making capital budgeting decisions.

1. Define capital expenditures and provide examples of capital expenditures.2. Cash flows for a particular project should be measured on an incremental basis. What does that mean?3. How does the opportunity cost concept affect capital budgeting cash flow determination?4. What factors should be considered when estimating a new business’ NINV? Is it any different for an asset replacement project. 5. Why is depreciation, a noncash expense, considered when estimating a project’s net cash flows?6. What are the potential tax consequences of selling an old asset in an asset replacement investment decision?

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? Check all that apply. The discounted payback period improves on the regular payback period by accounting for the time value of money.   Managers have been slow to adopt the IRR, because percentage returns are a harder concept for them to grasp.   For most firms, the reinvestment rate assumption in the NPV is more realistic than the assumption in the IRR.     True or False: Sophisticated firms use only the NPV method in capital budgeting decisions.…

Explain how a financial manager might estimate his or her firm’s optimal capital budget.

Capital Budgeting is acquiring inputs with long term returns. Which of the following author gave the above definition? a. Charles Richard b. Lyrich c. Charles T.Hrongreen d. Richard Green Law

Please answer the following questions.

Explain the behavioral issues involved incapital budgeting and identify how companiestry to control the capital budgeting process.

Which of the following statements is FALSE? A. When evaluating a capital budgeting decision, we generally include interest expense. B. Only include as incremental expenses in your capital budgeting analysis the additional overhead expenses that arise because of the decision to take on the project. C. Many projects use a resource that the company already owns. O D. As a practical matter, to derive the forecasted cash flows of a project, financial managers often begin by forecasting earnings.

What is capital budgeting? Are there any similarities between a firm’s capital budgeting decisions and an individual’s investment decisions?  Include work/personal experiences as application of your argument.

In the textbook's capital budgeting examples, the book assumes that the firm recovers all of its working capital invested into a project.   In the real world, is this a reasonable assumption?  Justify your position and discuss when it would