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Why is the strategic plan important to capital budgeting? Why capital projects are important to the firm? What does the Net Present Value (NPV) of

  1. Why is the strategic plan important to capital budgeting?
  2. Why capital projects are important to the firm?
  3. What does the Net Present Value (NPV) of a project measure?
  4. In the typical project life, where we expect to see the most positive cash flows - the acquisition stage, the operating stage, or the disposition stage.
  5. Current asset balances stay constant over the life of the project or do they change? Why do they or do not they change?

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