Imagine you are the consultant who has to recommendwhether to purchase Anheuser-Busch.

DQ#2. The payback method is often criticized because it ignores the time value of money and cashflowsafter the paybackperiod has been reached.How coulda simplepaybackcalculationbe used to comparewith projects that have been evaluatedby using the netpresentvalue method?

DQ#3A post-audit of a long-term capital project is very important.Who should conduct this review?Should managersof the projectbeing reviewedalways beheld responsible for costoverruns?

DQ#4 Capital budgeting decisions are among the most important decisions facing business entities.Suggest one specificmilestoneneeded to evaluate the performance of a capital project.Suggest some ways to holdmanagers accountable for spending overruns.