Question: 8. Conclusions about capital budgeting The decision process Before making capltal budgeting declsions, finance professionals often generate, revlew, analyze, select, and Implement long-term Investment proposals

8. Conclusions about capital budgeting The decision process Before making capltal budgeting declsions, finance professionals often generate, revlew, analyze, select, and Implement long-term Investment proposals that meet firm-specific criterla and are consistent with the firm's strategic goals. Companles often use several methods to evaluate the project's cash flows and each of them has Its beneflts and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following concluslons about capital budgeting are valld? Check all that apply. For most firms, the relnvestment rate assumption in the MIRR Is more reallstic than the assumption in the IRR. Managers have been slow to adopt the IRR, because percentage returns are a harder concept for them to grasp. The NPV shows how much value the company is creating for its shareholders. Is the single best method to use when making capital budgeting decisions
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