1. Identify the five stages of the capital budgeting process. How does each stage relate to the decision making process of a specific investment?

1. Identify the five stages of the capital budgeting process. How does each stage relate to the decision making process of a specific investment? Provide an example by pretending your company is thinking of purchasing a large asset (like a building, or piece of machinery).

2. Compare and contrast the net present value (NPR) method and the internal rate of return (IRR) method. When and why would one method be used over the other?