Capital structure and capital budgeting

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Reference no: EM131908742

In your own words answer

Two of the financial management decisions that we learned this semester include: capital structure and capital budgeting. Describe each financial management process, their respective importance within an organization, and provide an example of a business transaction that would be relevant. Your discussion on capital structure should describe WACC and explain its role within capital structure as well as in capital budgeting as a hurdle rate. Also, discuss the capital budgeting techniques that are used to determine a project’s value over time including the advantages and disadvantages of each as well as how a firm decides whether to accept or reject a project if using NPV or IRR. Please refer to the Instructor Notes and any other resources that you find relevant. Please remember to cite sources if outside sources are utilized.

Following are the capital budgeting techniques to include:

Net Present Value

Internal Rate of Return

Payback Period

Reference no: EM131908742

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