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please answer completely and correctly all questions thanks tion takeQuia&q; qui

ID: 2782280 • Letter: P

Question

please answer completely and correctly all questions thanks

tion takeQuia&q; quiz probGuid QNAPCDA201010000003a#926-0100000ck m. 1510028326544 0AAA051D cSearch Capital Budgeting: Decision Criteria Graded Assignment Due Thursday 11.09.17 at 09-00 PM Attempts: Keep the Highest: 14 Aa 15. Conclusions about capital budgeting The decision process Before making pital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-spedfic criteria and are goals. consistent with the firm's strategic Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that apply Because the MIRR and NPV use the same reinvestment rate assumption, they always lead to the same accept/reject decision for mutually exclusive projects For most firms, the reinvestment rate assumption in the is more realistic than the assumption in the IRR The NPV shows how much value the company is creating for its shareholders. is the single best method to use when making capital budgeting decisions. Continue without saving

Explanation / Answer

option 2 and 3 are correct

NPV and MIRR does not necessarily produce the same outcome