Week 5 Discussion

| January 21, 2016

“Making Capital Investment Decisions” Please respond to the following:

From the e-Activity, determine two (2) investments that you would invest in, based on your use of capital budgeting techniques. Provide a rationale for your response.
Suppose a financial manager is quoted as saying, “Our firm uses the stand-alone principle. Because we treat projects like mini firms in our evaluation process, we include financing costs because they are relevant at the firm level.” Critically evaluate the financial soundness of the manager’s statement. Justify your response.
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Category: Essay

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