What are the strengths and weaknesses of these capital budgeting methods? Match the term with the strengths and weaknesses listed for each of the four capital budgeting models. Capital Budgeting Method Strengths/Weaknesses of Capital Budgeting Method Is based on cash flows, can be used to assess profitability, and takes into account the time value of money. It has none of the weaknesses of the other models. Is easy to understand, is based on cash flows, and highlights risks. However, it ignores profitability and the time value of money. Can be used to assess profitability, but it ignores the time value of money. It allows us to compare alternative investments in present value terms and it also accounts for differences in the investments' initial cost. It has none of the weaknesses of the other models. Part 7 Requirement 3. Which expansion plan should Lapos Company choose? Why? Lapos Company should invest in  because it has a  longer shorter payback period, a  higher lower ARR, a  higher lower net present value, and a  higher lower profitability index. Part 8 Requirement 4. Estimate Plan A's IRR. How does the IRR compare with the company's required rate .

Answer rating: 100% (QA)

Answer Strengths and Weaknesses of Capital Budgeting Methods Heres the matching of capital budgeting methods with their strengths and weaknesses Capital Budgeting MethodStrengthsWeaknesses Net Present ... View the full answer