Question: 1. Capital budgeting is (a) concerned with analyzing alternative sources of capital, including debt and equity, (b) an important activity for companies when considering what assets to acquire or sell, or (c) best done by intuitive assessments of the value of assets and their usefulness.
2. Two investment alternatives are expected to generate annual cash flows with the same net present value (assuming the same discount rate applied to each). Using this information, can you conclude that the two alternatives are equally desirable?