Answer the folowiinf question on the basis of the The Fundamentals of Capital Budgeting 

1. Discuss why capital budgeting decisions are the most important decisions made by a firm's management.

2. Explain the benefits of using the net present value (NPV) method to analyze capital expenditure decisions, and be able to calculate the NPV for a capital project.

3. Describe the strengths and weaknesses of the payback period as a capital expenditure decision-making tool, and be able to compute the payback period for a capital project.

4. Explain why the accounting rate of return (ARR) is not recommended as a capital expenditure decision-making tool.

5. Be able to compute the internal rate of return (IRR) for a capital project, and discuss the conditions under which the internal rate of return (IRR) technique and the NPV technique produce different results.

6. Explain the benefits of a postaudit review of a capital project.

Academic requirements:

• Your work must be submitted as  pages 3 of pages

• Your work should be submitted in the formats outlined for each question in the assignment.