Question: Why is capital budgeting such an important process?Why are capital budgeting errors so costly? What are the disadvantages of using the payback period as a

  1. Why is capital budgeting such an important process?Why are capital budgeting errors so costly?
  2. What are the disadvantages of using the payback period as a capital budgeting technique?What are its advantages and why is it so frequently used?
  3. Briefly compare and contrast the NPV, PI, and IRR criteria.What are the advantages and disadvantages of using each of these methods?
  4. What are "mutually exclusive" projects?

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