When considering long-term capital investment decisions, such as when and how much to spend on equipment and other expensive long-term projects,

When considering long-term capital investment decisions, such as when and how much to spend on equipment and other expensive long-term projects, managers are likely to use capital investment analysis to ensure that their choices make the maximum contribution. Several methods are used to help managers identify projects that have the greater return on investment they are:Ø The payback periodØ Accounting rate of returnØ Net present valueØ Internal rate of returnResponse?

AnswerThe Capital Budgeting decisions pertain to fixed assets or long term assetswhich are in operation and yield a return, over a period of time. Thereforecapital budgeting decisions involves a...