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Learning Engagement #6

Learning Engagement, Week 6:

  1. Choose two capital budgeting methods identified in your readings and explain the characteristics and uses of each. Provide examples for illustration.
  2. In each example, provide the formula for each method, what types of long- or short-term projects would best for a project, and identify the strengths and weaknesses of each budgeting method.

PROFESSOR'S GUIDANCE FOR THIS WEEK'S LE:

Capital budgeting is used by companies to evaluate their major projects or investments. Each company determines which projects are best in terms of returns. There are several methods identified in the textbook regarding different budgeting methods. We have the Payback period, Accounting Rate of Return, Net Present Value, and the Internal Rate of Return. Each method offers management the capability of determining which of these methods are best suited for the project.

1. Please make sure that you read the relevant chapter from the textbook

2. Watch the YouTube videos for this week and additional course material provide

3. Ensure that you can communicate your point of view clearly and without ambiguity. Provide one example to strengthen your point of view in the main discussion.