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DiscussionQuestions 1.Howdowetraditionallydefinecapitalbudgetinginfinance? 2.Whatisthepurposeofcapitalbudgetinginabusinessfirm,andhowisitused? 3.NavistarTruckinghasadoptedanewapproachtocapitalbudgeting. 4.Whatisthefundamentalwayinwhichthenewapproachdiffersfromthetraditionalapproach? 5.Whatisthegoalofthenewapproachofcapitalbudgeting? 6.Underwhatcircumstanceswouldabusinessfirmdropaprojectchosenthroughthenewcapitalbudgetingapproach? Essay Questions 1. WACC What role does the cost of capital play in the overall financial decision making

  1. DiscussionQuestions
  2. 1.Howdowetraditionallydefinecapitalbudgetinginfinance?
  3. 2.Whatisthepurposeofcapitalbudgetinginabusinessfirm,andhowisitused?
  4. 3.NavistarTruckinghasadoptedanewapproachtocapitalbudgeting.
  5. 4.Whatisthefundamentalwayinwhichthenewapproachdiffersfromthetraditionalapproach?
  6. 5.Whatisthegoalofthenewapproachofcapitalbudgeting?
  7. 6.Underwhatcircumstanceswouldabusinessfirmdropaprojectchosenthroughthenewcapitalbudgetingapproach?

Essay Questions

1. WACC

What role does the cost of capital play in the overall financial decision making of the firms top managers?

2. DEBT VS EQUITY

Why do you think debt offerings are more common than equity offerings and typically much larger as well?

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