a) What distinguishes a capital investment from other business investments?
b) Explain the five-step capital budgeting process.
c) What are the various costs that must be evaluated in the capital budgeting process?
d) Discuss the advantages and disadvantages of using the pay-back method.
e) How does a company determine the interest rate it uses when making a net present value (NPV) decision?
f) What are the actual cost of capital to the borrowers?