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Question 1 You have just completed an analysis of an investment. You used Net Present Value, Profitability Index and Internal Rate of Return. Your boss

Question 1

You have just completed an analysis of an investment. You used Net Present Value, Profitability Index and Internal Rate of Return. Your boss has just asked you for the payback. What will you tell him/her?

Question 2

What is IRR and how is different from NPV?

Question 3

What types of projects require the least detailed and the most detailed analysis in the capital budgeting process?

Question 4

What is cost of capital and why it is important?

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