Assignment:
1. What are some reasons that capital asset acquisition decisions receive particular attention?
2. What are the limitations of the internal rate of return method and the problems with the payback method?
3. Wimpy, a character in Popeye cartoons, offers to "gladly pay you Tuesday for a hamburger today." Why might Burger King find this to be an unattractive offer?
4. Do capital budgets have an impact on operating budgets? Explain your answer thoroughly.