from (Principles of Managerial Finance, Zutter and Smart, Pearson. 15th Edition)

ANSWER:

1.-Which method is the best evaluation of a capital expenditure: Payback Period or IRR? (No right answer - explain your point of view).

2.-Many money managers often prefer to smooth dividends providing investors with a predictable return versus releasing the actual amount of excess cashflow. Does this increase or decrease the IRR of the equity investment? What other factors may be considered in the decision of how much to return to investors? Get creative and MAKE UP scenarios!