Discuss the connection between capital budgeting decisions and the enterprise’s cost of capital. Would an enterprise ever decide to embark on a project whose rate of return would be less than its cost of capital? Why or why not?

What are real options, and why are they important to capital budgeting?

What is capital budgeting? Explain various steps in its preparation and throw light on its limitations.

In capital budgeting decisions, are there reasons a company might choose to take a project that was NPV negative? Explain.

What is a capital investment and why do companies need to evaluate whether to make the investment or not?

please tell me which is the best option and formulate why, thanks

Please describe NPV, IRR and their relationship.     How do you evaluate each for making an investment decision?  That is, what is a favorable NPV and IRR for making an investment decision.       If you were developing a capital budgeting process at your employer, how would you prioritize your projects?     What is the NPV when IRR = WACC, IRR>WACC, and IRR<WACC?       There is a duplex for sale in Absecon for $700,000 at this time. It has 2 units that generate a total of $25,000 in gross rent. The property taxes are $4,000, commercial property insurance is $2,000, flood insurance is $1,000, and annual maintenance is $2,000. You expect to sell it in one year at a price growth of 0%. What is the NPV with a WACC of 10%.     Is the IRR greater or less than the WACC? Would you invest in this project and why?

Would changes in the cost of capital ever cause a change in the IRR ranking of projects? Why or why not?

What two variables affecting capital budgeting would you consider the most when making investment decisions?

Why is capital budgeting important for an organization? Describe the budgeting process and the concept of capital rationing.