Instructions:   Respond to the following questions in an essay:   1. NPV The NPV rule states that “An investment should

Instructions:

Respond to the
following questions in an essay:

1. NPV

The NPV rule states
that “An investment should be accepted if the NPV is positive and rejected
if it is negative.” What does an NPV of zero mean? If you were a
decision-maker faced with a project with a zero NPV (or very close to zero)
what would you do? Why?

2. FORECASTING ERROR
(RISK)

What is a
“forecasting error”? Why is it important to the analysis of capital
expenditure projects?

Guidelines:

-Use APA format.

-Do not use Wikipedia
as reference.

-Please be sure to back up your answers with facts from the textbook
and put together complete and well-thought-out responses.

-Please number each of your answers.  This is particularly important so
that I understand the questions to which you are responding. 

-Also, answer the questions completely. Quality counts.

Note to the
writer:

Access to the electronic textbook will be provided once the order is accepted,
along with additional instructions.