mc080203745
Jun 17, 2009, 11:01 AM
“Capital Budgeting”
Question:
A company is considering investing in an independent financial project. While focusing on the time value of money, the financial manager is concerned with the liquidity of this project as well as the short term and long term cash flows with least subjectivity. In this case, which capital budgeting technique(s) will possibly be used by the Financial Manager to make effective investment decision of the proposed project? Discuss with reasons.
Question:
A company is considering investing in an independent financial project. While focusing on the time value of money, the financial manager is concerned with the liquidity of this project as well as the short term and long term cash flows with least subjectivity. In this case, which capital budgeting technique(s) will possibly be used by the Financial Manager to make effective investment decision of the proposed project? Discuss with reasons.