1. Please read the filename titled: Capital Budgeting in the week 3 files to review folder. After reading this article and chapter10 in your textbook, post here your thoughts on the advantages and/or limitations of 2 of the following financial techniques. Suggest an application (a decision that managers could encounter) for each of the 2 you choose. 

net present value

internal rate of return

payback period

profitability index



2.  Watch the following 2 videos about the time value of money and the importance of present value to business decisions. How can present value analysis be used and why is it important to consider it in capital budgeting decisions? 


Video 1 Time Value of Money (8 min)

https://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial/present-value/v/time-value-of-money


Video 2 Importance of Present Value (10 min)

https://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial/present-value/v/introduction-to-present-value