Company capital budgeting-investment

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If you are CFO of Air Canada responsible for the company's capital budgeting/investment. Given our goals of firm value and shareholder wealth maximization, we have stressed the importance of NPV. And yet, many of the financial decision-makers at some of the most prominent firms in the world continue to use less desirable measures such as the payback period and AAR, in addition to the NPV and IRR. In recent case, should you consider investment projects for Air Canada for its long term return, why you use NPV methodology first then consider another methodology to complement the NPV? What are the methodologies you probably will not consider to use for Air Canada capital budgeting and Why do you think this is the case?

Reference no: EM132978894

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