FIN 486 Expect Success/uophelp.com FIN 486 Expect Success/uophelp.com | Page 20

FIN 486 Week 3 DQ 1 In your own words, explain capital budgeting. Why is it important to a company’s long-term success? Provide an example of poorly performed capital budgeting. How does this affect a company’s longterm success? ========================================= FIN 486 Week 3 DQ 2 For more course tutorials visit www.uophelp.com FIN 486 Week 3 DQ 2 Why is capital budgeting part of a company’s long-term strategic planning process? What are the pros and cons of these methods: o NPV o Simple payback  IRR  ===================================== 