Financial Management: Principles and Applications, 13/e

Study Questions

1. 11–1. In Regardless of Your Major: Making Personal Investment Decisions on page 330, what were the types of personal decisions discussed that can be addressed using capital-budgeting analyses?

2. 11–2. Where do firms learn about new investment ideas, and what is the role of the financial analyst in determining what projects the firm should undertake?

3. 11–3. It is customary to think about investment projects as falling into one of three groups: revenue-enhancing, cost-reducing, and mandatory. Describe what each of these categories means, and give an example.

4. 11–4. How is the presence or absence of product market competition that a firm faces related to the NPV of the firm’s investment opportunities? What are the types of barriers ...