1. What is capital budgeting? Capital budgeting is a decision making process that businesses use to determine or evaluate the probable earnings in investments or projects. 2. Identify four reasons that capital budgeting decisions are risky. Capital budgeting can be risky because the end result can be uncertain, a large amount some of money is involved, the investment requires long-commitment, and it can be challenging because the decisons can be irreversible. 3. Describe the cash inflows and outflows that occur over the life of a typical capital expenditure 4. Identify two weaknesses of the payback period method Two weaknesses of the payback period method is that the return investment of a project is avoided and also the cash flows that are resulted by a project or investments after a payback period. 5. Why is an investment more attractive if it has a shorter payback period? An investment becomes more attractive if it has a shorter payback period because it creates a faster cash flow to move in. 6. Samsung is