8. Conclusions about capital budgeting

The decision process Before making capital budgetinig decisions, finance professiorals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specitic criteria arid are consistent with the firm's strategic goals. Comparies ulten use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages, Based on wour understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? check all that agply. The NPV shows how much value the company is creating fot its shareholders: Because the MIRP and NPV use the same reimestment rate assumption, they always lead to the same accept/reject decision for mutually exclusive projects: For most fisme, the remve-tentht tate assumption in the NPY is more realistic than the assumption en the tiks the aingle best method to use when making capital budgeting decasions. Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and impl proposals that meet firm-specific criteria and are consistent with the firm's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and d understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budge The NPV shows how much value the company is creating for its shareholders. Because the MIRR and NPV use the same reinvestment rate assumption, they always lead to the same ac exclusive projects. For most firms, the reinvestment rate assumption in the NPV is more realistic than the assumption in the is the single best method to use when making capital budgeting decisions. The decision process Before making capital budgetinig decisions, finance professiorals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specitic criteria arid are consistent with the firm's strategic goals. Comparies ulten use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages, Based on wour understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? check all that agply. The NPV shows how much value the company is creating fot its shareholders: Because the MIRP and NPV use the same reimestment rate assumption, they always lead to the same accept/reject decision for mutually exclusive projects: For most fisme, the remve-tentht tate assumption in the NPY is more realistic than the assumption en the tiks the aingle best method to use when making capital budgeting decasions. Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and impl proposals that meet firm-specific criteria and are consistent with the firm's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and d understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budge The NPV shows how much value the company is creating for its shareholders. Because the MIRR and NPV use the same reinvestment rate assumption, they always lead to the same ac exclusive projects. For most firms, the reinvestment rate assumption in the NPV is more realistic than the assumption in the is the single best method to use when making capital budgeting decisions