7. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm's strategic goals. understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid check all For most firms, the reinvestment rate assumption in the NPV is more realistic than the assumption in the IRR. The discounted payback period improves on the regular payback period by accounting for the time value of Managers have been slow to adopt the IRR, because percentage returns are a harder concept for them to grasp. is the single best method to use when making capital budgeting decisions