About its profitability index and discounted payback

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a) Suppose a project has conventional cash flows (means only one cash outflow/outlay in the beginning) and a positive NPV. What could you say:

1) About its payback?

2) About its discounted payback?

3) About its profitability index?

4) About its IRR? Explain in your own language.

b) Can you apply capital budgeting criteria to not-for-profit corporations? How would such entities make capital budgeting decisions?

c) What about the U.S. government? Should it evaluate spending proposals using these techniques? What could be the benchmark interest rate? I need this question answered ASAP.

All questions need to be explained in detail.

Reference no: EM131498621

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