Question

Discuss the notions of conventional and nonconventional cash flows in capital budgeting. Which investment evaluation criteria...

Discuss the notions of conventional and nonconventional cash flows in capital budgeting. Which investment evaluation criteria would you use for unconventional cash flows and why? Provide a fictitious unconventional cash flow example and apply the payback period, NPV, IRR, MIRR, and PI methods to your example. Interpret the results.

Homework Answers

Answer #1

NPV and IRR are normally considerated the beat capital budgeting techniques.They consider time value of money.

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