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1. Why does capital budgeting rely on analysis of cash flows rather than on net income? 2. What are the weaknesses of the payback method?

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1. Why does capital budgeting rely on analysis of cash flows rather than on net income? 2. What are the weaknesses of the payback method? 3. What is normally used as the discount rate in the net present value method? 4. How does an asset's ADR (asset depreciation range) relate to its MACRS category? 5. What is the net present value profile? What three points should be determined to graph the profile? Note: 1. Your assignment should be 2 to 3 pages in length and written in APA Style format

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