Respond to four questions and solve two computational problems about the capital budgeting process.
The capital budgeting process is a method used by organizations to evaluate their investment in various projects, such as buying new machinery or expanding into a new plant. You will benefit from being able to
demonstrate the use of the capital budgeting process, including the following techniques and terms:
Net present value (NPV) method.
Internal rate of return (IRR) method.
Modified internal rate of return (MIRR) method.
Payback period.
Discounted payback period.
Profitability index.