Capital Budgeting

Post a 250- to 300-word explanation in APA format on one of the capital budgeting methods (NPV, IRR, etc.) that are used to examine potential investments. Explain some of its advantages and disadvantages. Also, explain which capital budgeting method is superior and why. Finally, explain the effects that depreciation has on net income and cash flow of a company.

Be sure to support your work with specific citations from this week’s readings and any additional sources. 

Week’s Readings

·       Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2017). Essentials of corporate finance (9th ed.). New York, NY: McGraw-Hill Irwin.

o   Chapter 8, “Net Present Value and Other Investment Criteria” (pp. 236-228)

o   Chapter 9, “Making Capital Investment Decisions” (pp. 274-301)

·       University of Kansas. (2013). Chapter 3, Section 14: SWOT analysis: Strengths, weaknesses, opportunities, and threats. Retrieved from http://ctb.ku.edu/en/table-of-contents/assessment/assessing-community-needs-and-resources/swot-analysis/main