Question: Please write in your own words Q1. Explain net present value (NPV) as a capital budgeting tool and how NPV is used for the evaluation

Please write in your own words

Q1. Explain net present value (NPV) as a capital budgeting tool and how NPV is used for the evaluation of a capital project. Explain net present value (NPV) as a capital budgeting tool and how NPV is used for the evaluation of a capital project.

Q2. Identify the assumptions that are necessary to make the general dividend valuation model easier to use, and, in doing so, to be able to use the model to calculate the value of a companys ordinary shares.

Q3. What is the Capital Asset Pricing Model (CAPM) and how is it used to evaluate whether the expected return on an asset is sufficient to compensate the investor for the inherent risk of the asset?

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