Question: What is'Net Present Value (NPV).'Explain how companies use this method when making decisions with respect to 1) independent projects and 2) mutually exclusive projects. What

  • What is'Net Present Value (NPV).'Explain how companies use this method when making decisions with respect to 1) independent projects and 2) mutually exclusive projects.
  • What is Internal Rate of Return (IRR) and how is it related to NPV?If you were evaluating a project which method would you prefer to use and why? Do they always lead to the same decision?
  • What other capital budgeting techniques are utilized by businesses and what are their weaknesses?

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