1. What are the five stages of capital budgeting?
2. What are the two primary discounted cash flow (DCF) methods for project evaluation?
3. What are the payback and discounted payback methods? What are their main weaknesses?
4. What are the strenghts and weaknesses of the accrual accounting rate-of-return (AARR) method for evaluating long-term projects?
5. What are the relevant cash inflows and outflows for capital budgeting decisions? How should accrual accounting concepts be considered?
6. What conflicts can arise between using DCF methods for capital budgeting decisions and accrual accounting for performance evaluation? How can these conflicts be reduced?
7. How can managers use capital budgeting to achiece strategic goals?