Capital Budgeting Methods

1) Describe the following capital budgeting methods: Cash payback method, Simple rate of return method, Net present value method, & the Internal rate or return method.

2) Describe how the “Time value of money” affects each capital budgeting method.

3) For each of the 4 capital budgeting methods, provide a business example for an actual company that illustrates each of the capital budgeting method.

4) Explain a business example for an actual company that illustrates when a company would accept or reject a capital investment for each of the 4 capital budgeting methods.