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Looking for answers to the following 10 questions What is the main purpose for a firm adapting capital budgeting decision methods? What question does the

Looking for answers to the following 10 questions

  1. What is the main purpose for a firm adapting capital budgeting decision methods?
  2. What question does the payback technique answer? Describe in words how to compute a payback measure.
  3. Name 3 flaws inherent in the payback measure.
  4. Despite your answer to question 3, payback remains a highly used method in practice. Why do you think the payback method is popular?
  5. What question does the net present value method answer? Describe in words how to compute a net present value measure.
  6. Compare the NPV technique to the payback technique as a capital investment decision measure.
  7. What question does the internal rate of return method answer? Describe in words how to find an internal rate of return.
  8. Compare the IRR to payback and NPV as a capital decision measure.
  9. Identify two potential causes of conflicts between NPV and IRR when ranking mutually exclusive investment projects.
  10. Investigate and report which, if any, of these measures your firm is utilizing in making capital investment decisions.

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