1. Discuss why capital budgeting decisions are the most important investment decisions made by a firms management.
2. Explain the benefits of using the net present value (NPV) method to analyze capital expenditure decisions and calculate the NPV for a capital project.
3. Describe the strengths and weaknesses of the payback period as a capital expenditure decision-making tool and compute the payback period for a capital project.
4. Compute the internal rate of return (IRR) for a capital project and discuss the conditions under which the IRR technique and the NPV technique produce different results.
5. Compute the Modified IRR (MIRR) to replace IRR.
6. Explain the benefits of post-audit and ongoing reviews of capital projects.