budgeting considerations

  1. As your colleagues describe their capital budgeting opportunities, read them as if you were a financial advisor to their companies. What other capital budgeting considerations should they be taking into account? What questions do you have for them?
  2. Where would a decision maker go to get information about future cash flows for a proposed project? What assumptions about reinvestment rates are embodied in the NPV, IRR, and MIRR methods?
  3. Let’s assume that you have been hired as a financial advisor to the stakeholders of one of the projects discussed by your classmates. Of the several methods of capital budgeting that we have available to us, which would you choose for that particular proposed project? Why?