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1.What is Opportunity Cost and its role in the reasons that a firm must retain cash. 2.What isthe power of compounding and provide two examples?

1.What is Opportunity Cost and its role in the reasons that a firm must retain cash.

2.What isthe power of compounding and provide two examples? In contrast, what is the term discounting in how it differs from compounding.

3.What is the NPV and the IRR. How do the two values differ? and provide an example for both.

4.What are at least three (3) of the capital budgeting techniques? Also, include the circumstance from which its use is preferred.

5.What is your understanding of the role of financial analysis in capital financial decisions? Outline how you might approach funding decisions regarding capital projects. Steps/Examples are ok for this answer.

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