Discussion Assignment 3.1
Capital Budgeting Methods
Activity Context
This discussion helps you develop the skills to master the following course competencies:
· Integrate financial analyses into general business management planning and decision making.
Discuss the various capital budgeting methods such as net present value (NPV), internal rate of return (IRR), and so on, and explain how they differ from one another. Identify which, if any, of the methods discussed might be superior to the others and explain why. If you were a financial manager, which method would you prefer and why?
Support your post as appropriate with the theories presented in this week's required reading.
Required Readings
Use your Corporate Finance: Core Principles and Applications textbook to read the following:
· Chapter 7, "Net Present Value and Other Investment Rules."
· Chapter 8, "Making Capital Investment Decisions."
· Chapter 9, "Risk Analysis, Real Options, and Capital Budgeting."
Required Textbooks/eBooks
Ross, S. A., Westerfield, R. W., Jaffe, J. F., & Jordan, B. D. (2018). Corporate finance: Core principles and applications (5th ed.). New York, NY: McGraw-Hill.
Use the University Library to read: see attachment.
· Keršytė�, A. (2011). Capital budgeting process: theoretical aspects. Economics & Management, 16, 1130–1134.
· Turner, J. A. (2016). Net operating working capital, capital budgeting, and cash budgets: A teaching example. American Journal of Business Education, 9(1), 15–21.
Multimedia
Resources
Discussion Participation Scoring Guide.
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