Problem: I need some assistance with this assignment please: Capital budgeting is the process by which long-term fixed assets are evaluated and possibly selected or rejected for investment purposes. The purpose of capital budgeting is to evaluate potential projects for possible investment by the firm.
Questions: Address all of the following questions in a brief but thorough manner.
1. What are the various methods for evaluating possible capital projects, in terms of their possible benefits to the firm? Describe the benefits and/or shortcomings of each.
2. What is the NPV profile and what are its uses?