Discuss capital budgeting techniques including the payback

Question

1. Discuss capital budgeting techniques including: the Payback Rule, IRR, NPV, and the Profitability Index. Be sure to discuss the advantages and disadvantages of each one. 
2. 2. Give an example of each capitalbudgeting technique above using your own numbers including cash flows, interest rate, and duration of the hypothetical project analyzed. Be creative with it. You do not need to use an Excel spreadsheet. You can insert your numbers in the word document. 
3. 3. Explain which capital budgeting technique is superior to the rest and why.

Answer 1

In a detailed, essay format; prepare a word paper regarding budgeting techniques in which have to answer the following questions as per the guidelines of the problem. Question 1: Illustrate capital budgeting methods comprising: the Payback Rule, IRR, NPV and the Profitability Index. Ensure to describe the merits and demerits of each one. Question 2: Provide an illustration of each capital budgeting method above using your own numbers comprising cash flows, interest rate and duration of the hypothetical project examined. Be creative with it. You don’t require using an Excel spreadsheet. Question 3: Describe which capital budgeting method is superior to the rest and explain why.