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Explain the five-step capital budget process

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1. List and Briefly explain the five-step capital budget process.

2. How does a company determine the interest rate it uses in making a net present value (NPV) decision?

3. What is the actual cost of capital to the borrower?

4. List two advantages of using NPV.

5. What are the advantages of the PI method of capital budgeting?

6. Discuss the method of capital budgeting that you would use in your own business. Justify your decision.

Reference no: EM132648639

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