In addition to your solution to each computational problem, you must show the supporting work leading to your solution to receive credit for your answer.
1. Describe the Net Present Value (NPV) method for determining a capital budgeting project's desirability. What is the acceptance benchmark when using NPV?
2. What is the payback period statistic? What is the acceptance benchmark when using the payback period statistic?
3. Describe the Internal Rate of Return (IRR) method for determining a capital budgeting project's desirability. What is the acceptance benchmark when using IRR?
4. Describe the Modified Internal Rate of Return (MIRR) method for determining a capital budgeting project's desirability. What are MIRR's strengths and weaknesses?