Capital Budgeting Techniques and Application:

a. What is capital budgeting and how do capital budgeting decisions impact the value of the firm?

b. Name some capital budgeting evaluation methods (NPV, IRR, etc.) and describe how to tell if a firm should go through with a project using these methods.

c. What is the difference between independent and mutually exclusive projects, and how would a capital budgeting decision be different if projects are mutually exclusive?