1.How do we calculate the payback period for a proposed capital budgeting project? What are the main criticisms of the payback method?
2.How does the net present value relate to the value of the firm?
3.What are the advantages and disadvantages of the internal rate of return method?
4.Provide three examples of mutually exclusive projects.
5.What is the decision rule for accepting or rejecting proposed projects when using net present value?