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Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-berm investment proposals that meet firm-specific criberia and are consistent with

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Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-berm investment proposals that meet firm-specific criberia 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 disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that apply. For most firms, the reinvestment rate assumption in the MIRR is more realistic than the assumption in the IRR. The NPV shows how much value the company is creating for its shareholders. Managers have been slow to adopt the IRR, because percentage retums are a harder concept for them to grasp is the single best method to use when making capital budgeting dedisions. IRR NPV

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