FIN 486 Week 5 DQs
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FIN 486 Week 5 DQs
Discussion Questions
In your own words, explain capital budgeting. Why is it important to a companys long-term success? Provide an example of poorly performed capital budgeting. How does this affect a companys long-term success?
Why is capital budgeting part of a companys long-term strategic planning process? What are the pros and cons of these methods:
o NPV
o Simple payback
o IRR
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