Questions 3

Questions (5-7IH)
Question 1:

• Define the most important capital budgeting techniques. Name at least two capital budgeting techniques (for example, NPV, IRR, Payback Period, et cetera) and describe how they are used to arrive at investment decisions.

 
 
Question 2:

• Create a unique hypothetical weighted average cost of capital (WACC) and rate of return.
• Recommend whether or not the company should expand, and defend your position.

 
Question 3:

• Explain the difference between financial statements and pro forma financial statements. Describe how these statements are developed and used in financial management and planning.