Answer each question with at least 300 words.
9(1) You’re asked to assess whether your corporation should invest in a long-term capital project. You calculate the payback period and NPV. Give an example of a specific recommendation you could make based on the NPV and a specific recommendation you could make based on the payback period.
9(2) Why are capital investments considered among the most important decisions made by a firm’s management?
10(1) What are different types of capital that a company can raise. Pick any real world company that you’ve worked for or are interested in and write about what kinds of capital they have raised or are raising.
11(1) For a small business, having payment terms is like using “free money” for a while. What do you think this means? And in your personal financial life, can you think of a situation where you also have access to using free money for a little while every month?
11(2) What are some advantages and disadvantages to a company in using short-term financing?