Question: Chapter 10 assignment: Answer all the following questions in full sentences: 1. Define capital expenditure? 2. Define operating expenditure? 3 . What are the five

Chapter 10 assignment: Answer all the following questions in full sentences: 1. Define capital expenditure? 2. Define operating expenditure? 3 . What are the five steps of the capital budgeting process and explain each step? 4. Define payback period? 5. What are the decision criteria for payback period? What are the weaknesses in using payback period? 6. What are the decision criteria for NPV? How are they related to the firm's market value? 7. Explain the similarities and differences between NPV, PI, EVA? 8. What are the decision criteria for IRR? How are they related to a firm's market value? 9. Do the NPV and IRR always agree with respect to acceptreject decisions? With respect to ranking decisions? Explain 10. Define ranking approach

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