Explain the different assumptions regarding the investment of
cash flows under NPV and IRR. Which assumption is more realistic?
Why? Which method is considered the best capital budgeting method?
Why?
Please use several different methods in establishing decision
rules for capital budgeting. Contrast and compare the net present
value and the internal rate of return models for capital budgeting.
Calculate the payback, discounted payback, net present value,
internal rate of return, and the modified internal rate of
return.