Support capital budgeting decisions

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Reference no: EM13746433

In your initial post, identify and recommend at least 1 credible Web site that discusses the process of calculating the models most commonly used to support capital budgeting decisions, and address at least 3 of the following topics:

  • What is the capital budgeting, and what role does it play in long-term investment decisions?
  • What are the basic capital budgeting models, and which ones are considered the most reliable and why?
  • What is net present value (NPV), how is it calculated, and what is the basic premise of its decision rule?
  • What is the internal rate of return (IRR), how is it calculated, and what is the basic premise of its decision rule?
  • What is the modified internal rate of return (MIRR), how is it calculated, and what is the basic premise of its decision rule?
  • How is the weighted average cost of capital (WACC) employed in capital budgeting decisions, and should it be used for all project regardless of the riskiness of a project?

Reference no: EM13746433

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