Week 3 - Capital Budgeting

Assignment Steps

· Show research on the matter that is properly cited and referenced according to APA with references

· Create a substantive message would include a personal or professional experience as it relates to the theory, please provide examples. 

· Word count of each substantive participation 100-150 words of each one of the following subjects:

1. Describe      how net present value is used in the financial decision-making process.
2. Explain      the disadvantages of using the payback method.
3. Compare      and contrast the internal rate of return (IRR) method from the net present      value method (NPV
4. Explain      the effects of sunk costs and opportunity costs in deciding whether to      accept a project.
5. Review      the financial considerations a company should make before investing in a      project.
6. Understand      how net working capital, depreciation and interest influence the decision      to buy or not to buy.
7. Explain      how inflation and interest rates affect the capital budgeting process.
8. Review      the types of assumptions used in sensitivity and scenario analysis.
9. Describe      how the options to expand or abandon a project are integrated in the      capital budgeting process.
10. Explain      how decision trees are used to value investment alternatives.