8. Conclusions about capital budgeting The decision process Before-making capital budgeting decisions, finance professionals often generate, review, anslyze, select, and implement long-term investment proposals that meet farm-speofic criteria and are consistent with the firm's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disodvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are validz Check alf that apply: For most firms, the reinvestmenc rate assumption in the NPV is more realistic than the assumption in the tRR. The discounted payback period improves on the regular purybock period by accounting for the time value of money. Managers have been slow to adopt the IRR, because percentage returns are a harder cencept for themt to grasp. True or Vahe: Sophisticated firms use anly the NPV method in captal budgeting decisions. Falde True