Capital Budgeting is a very important topic in Corporate Financial Management. The process starts with cash flow estimation, apply the correct evaluation method, making recommendations, and finally decision-making. Capital budgeting can be used to evaluate different types of project, from replacing an used equipment to enter into a completely new market, and purchase of another company. Many issues are very important in this decision making process. Please use the following list as suggested topics for the week. I do encourage you to think outside the box and come up your own topics:
1. How reliable the capital budgeting process is?
2. Among the different capital budgeting methods (payback, discounted payback, NPV, IRR, and PI), which one do you think works better?
3- How capital budgeting can be applied in mergers and acquisitions?
4. How capital budgeting can be applied in mergers and acquisitions?