You have already read this chapter. Please now complete the problem sets pertaining to how capital budgeting is used to make decisions. Do corporations actually use capital budgeting concepts and formulas to make decisions? Concepts and examples are presented using Net Present Value (NPV), Present Value (PV) tables, summaries and problems are presented. Internal Rate of Return (IRR), Net Present Value (NPV) and the payback method are presented along with examples that demonstrate application. Examples are presented and discussed with respect to Kohls and J.C. Penny's using capital budgeting decisions.

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