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1 . What are capital expenditures? Provide some examples of capital expenditures 2 . what is a cost - reduction decision? 3 . Define compound

1. What are capital expenditures? Provide some examples of capital expenditures
2. what is a cost-reduction decision?
3. Define compound interest.
4. Define present value.
5. What is capital budgeting?
6. Identify two capital budgeting methods that incorporate the time value of money into their analysis.
7. What does the residual (or salvage) value of an asset refer to?
8. What is a disadvantage of using the cash payback method?
9. What is meant by the term cost of capital?
10. What is an expansion decision?

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