What about the us government should it evaluate spending


a) Suppose a project has conventional cash flows (means only one cash outflow/outlay in the beginning) and a positive NPV. What could you say:

1) About its payback?

2) About its discounted payback?

3) About its profitability index?

4) About its IRR? Explain in your own language.

b) Can you apply capital budgeting criteria to not-for-profit corporations? How would such entities make capital budgeting decisions?

c) What about the U.S. government? Should it evaluate spending proposals using these techniques? What could be the benchmark interest rate?

All questions need to be explained in detail.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What about the us government should it evaluate spending
Reference No:- TGS02812495

Expected delivery within 24 Hours