Discuss the capital budgeting process

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Reference no: EM131525111

Question: 1. How is a project classification scheme (for example, replacement, expansion into new markets, and so forth) used in the capital budgeting process?

2. Explain why the NPV of a relatively long-term project, defined as one for which a high percentage of its cash flows are expected in the distant future, is more sensitive to changes in the cost of capital than is the NPV of a short-term project.

Reference no: EM131525111

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