DQ'S - Capital Budgeting Techniques

Capital Budgeting Techniques DQ'S

1. You are a Finance Manager for a major utility company.

Respond to the following in a minimum of 175 words:

• Think about some of the capital budgeting techniques you might use for some upcoming projects.
• Discuss at least 2 capital budgeting techniques and how your company can benefit from the use of these tools.

2.  For Figure 5.2, the authors showed how the interest rate influences the future value. As we increase the rate, the future value increases proportionally. Another factor affecting the future value is time, represented by the letter n in the future value formula. As we increase the time (n), the future value grows as well. What did you find interesting in Figure 5.2? What did you find intriguing about Example 5.1? Did you get the correct answer for Self-Test 5.1? 

3.  

Refer to Section 5.2. The authors discussed the present value. The present value is the inverse of the future value. The formula for the present value is below:

Present Value = Future Value/ (1+r)^n

Will someone share an example using the present value? In the explanation, share the steps that you took to solve for the present value?