Question: 1. Access Nokia's 2009 annual report dated December 31, 2009, from its Website www.Nokia.com. Identify and read the section on Environment-Corporate Responsibility. Required Nokia reports that up to 80 percent of a Nokia mobile device can be recycled and the remainder can be recovered as energy or materials so that nothing goes to a landfill. These recycling efforts are costly.
1. Why would a company like Nokia pursue these costly efforts?
2. Why is an investment more attractive to management if it has a shorter payback period?
3. What is capital budgeting?
4. Identify four reasons that capital budgeting decisions by managers are risky
5. Identify two disadvantages of using the payback period for comparing investments.