How is capital budgeting similar to security valuation? How is it
different?
What are some ways firms generate ideas for capital projects?
Identify the major project classification categories, and explain why
and how they are used
Why is the NPV regarded as being the primary capital budgeting
decision criterion?
What’s the difference between “independent” and “mutually exclu-
sive” projects?
What are the NPVs of Projects SS and LL if both have a 10 percent
cost of capital and the indicated cash flows?
