UNIT 4 - MILESTONE 4 120 SUBMIT MILESTONE Question 1 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. Place the following steps for developing a credit policy in the correct order of process: . A: The company decides that it wants to minimize opportunity costs by having as UNIT 4 TUTORIALS much cash on hand as possible. 4.1 Capital Budgeting and the Role of Risk O . B: The company decides that it will send out two notices of late payments to customers before pursuing other collection methods. 4.1.1 Introduction to Capital Budgeting . C: The company decides that its payment terms will be Net 15. 4.1.2 The Payback Method 4.1.3 Internal Rate of Return O C, B, A 4.1.4 Net Present Value O C, A, B 4.1.5 Cash Flow Analysis and Other Factors 4.1.6 Risk and Capital Budgeting O A, C, B 4.2 Obtaining Capital: Methods of Long-Term Financing O O A, B, C 4.2.1 Types of Financing 4.2.2 Venture Capital SAVE & CONTINUE 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing Report an issue with this question 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working Capital https://app.sophia.org/spcc/principles-of-finance-milestone-4-1/1/10948UNIT 4 - MILESTONE 4 120 SUBMIT MILESTONE Question 2 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. Which of the following is a goal of working capital management? UNIT 4 TUTORIALS O To elongate the cash conversion cycle 4.1 Capital Budgeting and the Role of Risk O 4.1.1 Introduction to Capital Budgeting O To generate as much free working capital as possible 4.1.2 The Payback Method O To manage long-term assets in a way that maximizes returns 4.1.3 Internal Rate of Return O To ensure liquidity while reducing opportunity costs 4.1.4 Net Present Value 4.1.5 Cash Flow Analysis and Other Factors 4.1.6 Risk and Capital Budgeting SAVE & CONTINUE 4.2 Obtaining Capital: Methods of Long-Term Financing O Report an Issue with this question 4.2.1 Types of Financing 4.2.2 Venture Capital 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working Capital javascript:void(0);UNIT 4 - MILESTONE 4 120 SUBMIT MILESTONE Question 3 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. A company with a 120-day operating cycle determines its cash conversion cycle using the following data: UNIT 4 TUTORIALS . Receivable days: 25 4.1 Capital Budgeting and the Role of Risk O . Inventory days: 95 . Payable days: 35 4.1.1 Introduction to Capital Budgeting 4.1.2 The Payback Method What is the company's cash conversion cycle? 4.1.3 Internal Rate of Return O 165 4.1.4 Net Present Value 4.1.5 Cash Flow Analysis and Other Factors O 25 4.1.6 Risk and Capital Budgeting O 85 4.2 Obtaining Capital: Methods of Long-Term Financing O O 105 4.2.1 Types of Financing 4.2.2 Venture Capital 4.2.3 Leasing SAVE & CONTINUE 4.2.4 The Role of Investment Banks in Financing Report an issue with this question 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working Capital javascript:void(0);UNIT 4 - MILESTONE 4 120 SUBMIT MILESTONE Question 4 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. Which of the following Investors would likely prefer a cash dividend over a stock dividend? UNIT 4 TUTORIALS 4.1 Capital Budgeting and the Role of Risk O O Layton prefers when companies let him decide how to benefit from his dividends. 4.1.1 Introduction to Capital Budgeting O Enrique subscribes to the "bird in the hand" theory when it comes to dividends. 4.1.2 The Payback Method 4.1.3 Internal Rate of Return O Kylie is a high-income earner and prefers to avoid additional taxes this year. 4.1.4 Net Present Value Harriett is more focused on long-term outcomes than short-term ones when it comes to 4.1.5 Cash Flow Analysis and Other Factors investing. 4.1.6 Risk and Capital Budgeting 4.2 Obtaining Capital: Methods of Long-Term Financing O SAVE & CONTINUE 4.2.1 Types of Financing Report an issue with this question 4.2.2 Venture Capital 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working Capital javascript:void(0);UNIT 4 - MILESTONE 4 120 SUBMIT MILESTONE Question 5 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. In what way are debt securities, equity securities and derivatives similar? UNIT 4 TUTORIALS O They all have fixed terms. 4.1 Capital Budgeting and the Role of Risk O 4.1.1 Introduction to Capital Budgeting O They can all be used to hedge against risk. 4.1.2 The Payback Method O Their value is derived from an underlying asset. 4.1.3 Internal Rate of Return O They all confer ownership in a business. 4.1.4 Net Present Value 4.1.5 Cash Flow Analysis and Other Factors 4.1.6 Risk and Capital Budgeting SAVE & CONTINUE 4.2 Obtaining Capital: Methods of Long-Term Financing O Report an issue with this question 4.2.1 Types of Financing 4.2.2 Venture Capital 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working CapitalUNIT 4 - MILESTONE 4 120 SUBMIT MILESTONE Question 6 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. A business that has too little working capital can take what action? UNIT 4 TUTORIALS O Increase inventory 4.1 Capital Budgeting and the Role of Risk O 4.1.1 Introduction to Capital Budgeting O Increase short-term financing 4.1.2 The Payback Method O Reduce credit to consumers 4.1.3 Internal Rate of Return O Reduce cash on hand 4.1.4 Net Present Value 4.1.5 Cash Flow Analysis and Other Factors 4.1.6 Risk and Capital Budgeting SAVE & CONTINUE 4.2 Obtaining Capital: Methods of Long-Term Financing O Report an Issue with this question 4.2.1 Types of Financing 4.2.2 Venture Capital 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working Capital javascript:void(0);UNIT 4 - MILESTONE 4 120 SUBMIT MILESTONE Question 7 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. According to the residual dividend model, what takes priority over distributing dividends? UNIT 4 TUTORIALS O Establishing a target payout ratio 4.1 Capital Budgeting and the Role of Risk O 4.1.1 Introduction to Capital Budgeting O Financing planned projects 4.1.2 The Payback Method O Paying off debt 4.1.3 Internal Rate of Return O Increasing share price 4.1.4 Net Present Value 4.1.5 Cash Flow Analysis and Other Factors 4.1.6 Risk and Capital Budgeting SAVE & CONTINUE 4.2 Obtaining Capital: Methods of Long-Term Financing O Report an issue with this question 4.2.1 Types of Financing 4.2.2 Venture Capital 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working Capital javascript:void(0);UNIT 4 - MILESTONE 4 120 SUBMIT MILESTONE Question 8 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. What is one potential advantage of being a privately-held company? UNIT 4 TUTORIALS O If a company is private, it is better positioned to pursue acquisitions. 4.1 Capital Budgeting and the Role of Risk O O 4.1.1 Introduction to Capital Budgeting Risk is spread among a larger pool of investors in a private company. 4.1.2 The Payback Method A private company has access to less expensive sources of capital than a public O 4.1.3 Internal Rate of Return company. 4.1.4 Net Present Value O If managers also own the company, they are strongly incentivized to succeed. 4.1.5 Cash Flow Analysis and Other Factors 4.1.6 Risk and Capital Budgeting SAVE & CONTINUE 4.2 Obtaining Capital: Methods of Long-Term Financing O Report an issue with this question 4.2.1 Types of Financing 4.2.2 Venture Capital 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working CapitalUNIT 4 - MILESTONE 4 120 SUBMIT MILESTONE Question 9 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. Lennon owns 50 shares of stock in Company A that are valued at $10/share. After Company A splits their stock at 2-for-1, what does Lennon own? UNIT 4 TUTORIALS 4.1 Capital Budgeting and the Role of Risk O O 100 shares valued at $10/share 4.1.1 Introduction to Capital Budgeting 4.1.2 The Payback Method O 50 shares valued at $20/share 4.1.3 Internal Rate of Return O 50 shares valued at $10/share 4.1.4 Net Present Value 4.1.5 Cash Flow Analysis and Other Factors O 100 shares valued at $5/share 4.1.6 Risk and Capital Budgeting SAVE & CONTINUE 4.2 Obtaining Capital: Methods of Long-Term Financing O 4.2.1 Types of Financing Report an Issue with this question 4.2.2 Venture Capital 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working Capital javascript:void(0);UNIT 4 - MILESTONE 4 119 SUBMIT MILESTONE Question 10 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. Which of the following is an example of a market risk for a company that manufactures automobiles? UNIT 4 TUTORIALS 4.1 Capital Budgeting and the Role of Risk O O Supply chain disruptions due to civil war in a country that supplies material 4.1.1 Introduction to Capital Budgeting O A massive lawsuit against the manufacturer over worker safety 4.1.2 The Payback Method 4.1.3 Internal Rate of Return O A downgrade in the company's credit rating 4.1.4 Net Present Value A drop in demand due to the rise of ride-sharing as an alternative to automobile 4.1.5 Cash Flow Analysis and Other Factors ownership 4.1.6 Risk and Capital Budgeting 4.2 Obtaining Capital: Methods of Long-Term Financing O SAVE & CONTINUE 4.2.1 Types of Financing Report an issue with this question 4.2.2 Venture Capital 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working Capital javascript:void(0);UNIT 4 - MILESTONE 4 119 SUBMIT MILESTONE Question 11 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. What is the benefit to a company from a securities underwriter? UNIT 4 TUTORIALS O They help companies to receive a premium on the sale of their securities. 4.1 Capital Budgeting and the Role of Risk O O They study the market and advise companies on where to set their IPO share price. 4.1.1 Introduction to Capital Budgeting 4.1.2 The Payback Method O They help companies to reduce the risk associated with an IPO. 4.1.3 Internal Rate of Return They generate demand for a company's securities by giving them a strong credit rating. 4.1.4 Net Present Value 4.1.5 Cash Flow Analysis and Other Factors 4.1.6 Risk and Capital Budgeting SAVE & CONTINUE 4.2 Obtaining Capital: Methods of Long-Term Financing O Report an Issue with this question 4.2.1 Types of Financing 4.2.2 Venture Capital 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working Capital javascript:void(0);UNIT 4 - MILESTONE 4 119 SUBMIT MILESTONE Question 12 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. Which of the following is true of venture capital? UNIT 4 TUTORIALS Venture capitalists reserve the right to sell their portion of company shares before an O 4.1 Capital Budgeting and the Role of Risk O IPO 4.1.1 Introduction to Capital Budgeting O Venture capital is comparable to a bank loan, which must be repaid over time. 4.1.2 The Payback Method 4.1.3 Internal Rate of Return One way venture capitalists evaluate potential investments is by analyzing a company's O share price. 4.1.4 Net Present Value 4.1.5 Cash Flow Analysis and Other Factors On average, venture capital investors seek a return on their investment in about five O years. 4.1.6 Risk and Capital Budgeting 4.2 Obtaining Capital: Methods of Long-Term Financing O SAVE & CONTINUE 4.2.1 Types of Financing Report an issue with this question 4.2.2 Venture Capital 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working Capital javascript:void(0);UNIT 4 - MILESTONE 4 119 SUBMIT MILESTONE Question 13 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. An electronics company is preparing a capital budget and considering four long-term investments. The payback period of each project is as follows: UNIT 4 TUTORIALS . Project A: 4 years 4.1 Capital Budgeting and the Role of Risk O . Project B: 5.2 years . Project C: 2.4 years 4.1.1 Introduction to Capital Budgeting . Project D: 3 years 4.1.2 The Payback Method In theory, which two projects should the company pursue? 4.1.3 Internal Rate of Return 4.1.4 Net Present Value O Projects A and C 4.1.5 Cash Flow Analysis and Other Factors O Projects C and D 4.1.6 Risk and Capital Budgeting 4.2 Obtaining Capital: Methods of Long-Term Financing O O Projects A and B 4.2.1 Types of Financing O Projects B and D 4.2.2 Venture Capital 4.2.3 Leasing SAVE & CONTINUE 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing Report an issue with this question 4.3 Working Capital Management 4.3.1 Working Capital javascript:void(0);UNIT 4 - MILESTONE 4 119 SUBMIT MILESTONE Question 14 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. Ollie owned stock in a hotel company that announced a dividend, but he did not receive it. This Is because he sold the stock before the date had passed. UNIT 4 TUTORIALS 4.1 Capital Budgeting and the Role of Risk O O ex-dividend 4.1.1 Introduction to Capital Budgeting 4.1.2 The Payback Method O in-dividend 4.1.3 Internal Rate of Return O book closure 4.1.4 Net Present Value 4.1.5 Cash Flow Analysis and Other Factors O payment 4.1.6 Risk and Capital Budgeting 4.2 Obtaining Capital: Methods of Long-Term Financing O SAVE & CONTINUE 4.2.1 Types of Financing Report an Issue with this question 4.2.2 Venture Capital 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working Capital javascript:void(0);UNIT 4 - MILESTONE 4 119 SUBMIT MILESTONE Question 15 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. Determine whether the following description is true of a capital lease, an operating lease, neither or both. UNIT 4 TUTORIALS "A commercial financing agreement wherein a company may purchase the leased asset at 4.1 Capital Budgeting and the Role of Risk O a discount when the lease ends" 4.1.1 Introduction to Capital Budgeting 4.1.2 The Payback Method O Capital lease 4.1.3 Internal Rate of Return Operating lease 4.1.4 Net Present Value O Both 4.1.5 Cash Flow Analysis and Other Factors 4.1.6 Risk and Capital Budgeting O Neither 4.2 Obtaining Capital: Methods of Long-Term Financing O 4.2.1 Types of Financing SAVE & CONTINUE 4.2.2 Venture Capital Report an Issue with this question 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working Capital javascript:void(0);UNIT 4 - MILESTONE 4 119 SUBMIT MILESTONE Question 16 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. A company invests $40,000 in a project with the following net cash flows: . Year 1: $3,000 UNIT 4 TUTORIALS . Year 2: $8,000 4.1 Capital Budgeting and the Role of Risk O . Year 3: $14,000 4.1.1 Introduction to Capital Budgeting . Year 4: $19,000 . Year 5: $22,000 4.1.2 The Payback Method Year 6: $28,000 4.1.3 Internal Rate of Return In what year does payback occur? 4.1.4 Net Present Value 4.1.5 Cash Flow Analysis and Other Factors O Year 3 4.1.6 Risk and Capital Budgeting O Year 4 4.2 Obtaining Capital: Methods of Long-Term Financing O O Year 6 4.2.1 Types of Financing 4.2.2 Venture Capital O Year 5 4.2.3 Leasing 4.2.4 The Role of Investment Banks In Financing SAVE & CONTINUE 4.2.5 Comparing Public and Private Financing Report an issue with this question 4.3 Working Capital Management 4.3.1 Working Capital javascript:void(0);UNIT 4 - MILESTONE 4 119 SUBMIT MILESTONE Question 17 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. What is one disadvantage of NPV as a capital budget method? UNIT 4 TUTORIALS O It can only be used to evaluate bonds. 4.1 Capital Budgeting and the Role of Risk O 4.1.1 Introduction to Capital Budgeting O It cannot be used to compare mutually exclusive investments. 4.1.2 The Payback Method O It can be very difficult to calculate, even if inputs like cash flows are quite clear. 4.1.3 Internal Rate of Return 4.1.4 Net Present Value O Although the weighted average cost of capital is commonly used as the discount rate, it is not a perfect input. 4.1.5 Cash Flow Analysis and Other Factors 4.1.6 Risk and Capital Budgeting SAVE & CONTINUE 4.2 Obtaining Capital: Methods of Long-Term Financing O Report an issue with this question 4.2.1 Types of Financing 4.2.2 Venture Capital 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working Capital javascript:void(0);UNIT 4 - MILESTONE 4 119 SUBMIT MILESTONE Question 18 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. Seed money is a type of financing appropriate for a company in what stage of development? UNIT 4 TUTORIALS 4.1 Capital Budgeting and the Role of Risk O O Decline 4.1.1 Introduction to Capital Budgeting O Maturity 4.1.2 The Payback Method 4.1.3 Internal Rate of Return O Introduction 4.1.4 Net Present Value O Growth 4.1.5 Cash Flow Analysis and Other Factors 4.1.6 Risk and Capital Budgeting SAVE & CONTINUE 4.2 Obtaining Capital: Methods of Long-Term Financing O Report an Issue with this question 4.2.1 Types of Financing 4.2.2 Venture Capital 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working CapitalUNIT 4 - MILESTONE 4 119 SUBMIT MILESTONE Question 19 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. When managing its cash, a company should make use of float to UNIT 4 TUTORIALS O set aside cash for future payments 4.1 Capital Budgeting and the Role of Risk O O 4.1.1 Introduction to Capital Budgeting make payments before they come due 4.1.2 The Payback Method O decrease the length of time for a payment to clear the bank 4.1.3 Internal Rate of Return O increase the length of the disbursement cycle 4.1.4 Net Present Value 4.1.5 Cash Flow Analysis and Other Factors 4.1.6 Risk and Capital Budgeting SAVE & CONTINUE 4.2 Obtaining Capital: Methods of Long-Term Financing O Report an issue with this question 4.2.1 Types of Financing 4.2.2 Venture Capital 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working Capital javascript:void(0);UNIT 4 - MILESTONE 4 119 SUBMIT MILESTONE Question 20 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. Kiran needs additional short-term financing for his robotics company, so he asks his suppliers if they could issue a discount if he pays his bills early. UNIT 4 TUTORIALS What type of financing resource is Kiran using? 4.1 Capital Budgeting and the Role of Risk O 4.1.1 Introduction to Capital Budgeting O Barter 4.1.2 The Payback Method O Factoring 4.1.3 Internal Rate of Return 4.1.4 Net Present Value O Peer-to-peer lending 4.1.5 Cash Flow Analysis and Other Factors O Trade credit 4.1.6 Risk and Capital Budgeting 4.2 Obtaining Capital: Methods of Long-Term Financing O SAVE & CONTINUE 4.2.1 Types of Financing 4.2.2 Venture Capital Report an issue with this question 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working Capital javascript:void(0);UNIT 4 - MILESTONE 4 118 SUBMIT MILESTONE Question 21 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. When performing capital budgeting and considering replacement projects, one factor that must be considered is the potential of equipment that is no longer needed. UNIT 4 TUTORIALS 4.1 Capital Budgeting and the Role of Risk O O salvage value 4.1.1 Introduction to Capital Budgeting 4.1.2 The Payback Method O sunk costs 4.1.3 Internal Rate of Return O depreciation 4.1.4 Net Present Value 4.1.5 Cash Flow Analysis and Other Factors O taxation 4.1.6 Risk and Capital Budgeting 4.2 Obtaining Capital: Methods of Long-Term Financing O SAVE & CONTINUE 4.2.1 Types of Financing Report an Issue with this question 4.2.2 Venture Capital 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working Capital javascript:void(0);UNIT 4 - MILESTONE 4 118 SUBMIT MILESTONE Question 22 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. Which inventory technique is most useful when a business has Inventory that varies greatly in value UNIT 4 TUTORIALS 4.1 Capital Budgeting and the Role of Risk O O LIFO 4.1.1 Introduction to Capital Budgeting O FIFO 4.1.2 The Payback Method 4.1.3 Internal Rate of Return O Average cost 4.1.4 Net Present Value O ABC 4.1.5 Cash Flow Analysis and Other Factors 4.1.6 Risk and Capital Budgeting SAVE & CONTINUE 4.2 Obtaining Capital: Methods of Long-Term Financing O Report an Issue with this question 4.2.1 Types of Financing 4.2.2 Venture Capital 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working Capital javascript:void(0);UNIT 4 - MILESTONE 4 118 SUBMIT MILESTONE Question 23 O Mark this question Here are all the tutorials from Unit 4. Use them as needed throughout the Unit 4 Milestone. Select one disadvantage of IRR as a capital budget method. UNIT 4 TUTORIALS O It is not useful for comparing projects with different lifespans. 4.1 Capital Budgeting and the Role of Risk O 4.1.1 Introduction to Capital Budgeting O It can only be used with projects that have positive cash flows. 4.1.2 The Payback Method O It can be difficult to interpret and understand. 4.1.3 Internal Rate of Return O It fails to account for the time value of money. 4.1.4 Net Present Value 4.1.5 Cash Flow Analysis and Other Factors 4.1.6 Risk and Capital Budgeting SAVE & CONTINUE 4.2 Obtaining Capital: Methods of Long-Term Financing O Report an issue with this question 4.2.1 Types of Financing 4.2.2 Venture Capital 4.2.3 Leasing 4.2.4 The Role of Investment Banks in Financing 4.2.5 Comparing Public and Private Financing 4.3 Working Capital Management 4.3.1 Working Capital javascript:void(0)