Q1- List and describe each of the five stages in capital budgeting.
Q2- The Proposal A and B is a 2 year payback while Proposal C would be a 1 year.
Payback for Proposal A:
Year 1 $80,000
Year 2 10,000
Payback is 2 years $90,000
Payback for Proposal B:
Year 1 $45,000
Year 2 45,000
Payback is 2 years $90,000
Payback for Proposal C:
Year 1 $90,000
What is net present value?