UNIT 3 QUESTIONS

CHAPTER 11

1 How are project classifications used in the capital budgeting process?

2 What are three potential flaws with the regular payback method? Does the discounted payback method correct all three flaws? Explain.

8 Project X is very risky and has an NPV of $3 million. Project Y is very safe and has a NPV of $2.5million. They are mutually exclusive and project risk has been properly considered in the NPV analyses. Which project should be choses? Explain.

COMPLETE THE FOLLOWING QUESTIONS FROM THE IMAGE-

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ANSWER THE FOLLOWING QUESTIONS FROM THE IMAGE BELOW

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