8. Discussion (No outside sources required all necessary information fas been presented in Module 4 in Moodie) a) Using what you have learned in the lecture notes and having just analyzed eacla of the projects using the four key capital budgeting techniques, describe the reinvestment assumptions for each of the inconented dhring andisis. i. NPV if. IRR iii, Profitability Index (PI) iv. Payback period b) For an independent project, which of the capital budgeting analysis techniques will always have the aceeptreject decision, and why. Be precise in your explanation of "why" the techniques would agree. Hints: Keep it simple, dow't go down the "but what if.... "road Independent projects-accepring one doesn't mean you have to reject another one. Dew't assime financial constraints fou could Wheorehically find all wable projects). Aciume "horwal" cash flows (only I sign change in other words, the owlloy is considered negative and all futare cash flows are positive), so that there is only a single IRR. (2 pts) c) How would a change in the required rate of return affect the project's calculated internal rate of return (IRR)? Explain. Would the acceptreject decision change using the IRR analysis method? Explain. (2 pts) d) Think about changes that happen in a project once it has been accepted and moving forward. Here are 3 potential scenarios. For each, describe what you expect to happen to a project's expected NPV, and WITY that is your expectation. ( 2 pts for each of the following). As MBA stulents, just being able to colculate NPV isn't sufficlent. You should be able to consider what the effece of various market or project changes on the project's viability. LOOK AT EACH SITUTION INDIVIDUALLY AND ASSUME THAT THERE ARE NO OTHER CHANGES FOR THE FIRM