Please add a beginning and conclusion. Answer the questions. Add 1,2,3 before the answering the questions.
1. Define and describe what capital budgeting is in a firm, and define and describe the net present value (NPV) rule as it is used in the capital budgeting process.
2. Describe how net present value is used to choose among potential projects investments financial alternatives in the capital budgeting process. (i.e., talk about the ramifications of a positive or negative NPV)
3. Define and compare capital rationing vs. unlimited funds in the capital budgeting process, and describe when a firm would use capital rationing.
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