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University of Arizona Capital Investment Proposals Discussion

 

Sample draft of the following topic:

Capital budgeting plays an important role in planning for capital expenditures. Regardless of one’s role or department in an organization, it is important to be familiar with the capital budgeting process in order to determine the financial viability of any projects or proposals.

Your textbook presents three primary methods financial managers use to rank capital investment proposals. Summarize each method, and assess its advantages and disadvantages. 

The three methods are, payback method, internal rate of return (IRR), and net present value (NPV). 

Reference 

Block, S. B., Hirt, G. A., & Danielson, B. R. (2019). Foundations of financial management (17th ed.). https://www.vitalsource.com/