Assignment 1: Capital Budgeting and Estimating Cash Flows

Assignment 1: Capital Budgeting and Estimating Cash Flows

General Questions:

Respond to the following questions thoroughly, in 150-300 words for each question. Use your textbook as your first and major reference.

1. What are the pros and cons of the decision rules for the NPV, the IRR, the MIRR, and the payback methods? Which is the most accurate method and why?
2. What are sunk costs? Should they be included in the cash flow estimation when making a capital budgeting decision? Why or why not?

Deliverables:

1. Answer the General Questions and post your responses to the Discussion Area by Saturday, December 6, 2014. Be sure to explain your answers thoroughly, use specific examples, and cite your sources.
2. Participate in the discussions, responding to at least two other responses