6-1. Explain how a net present value (NPV) profile is used to compare projects. How does this profile compare to that of internal rate of return (IRR)? How does reinvestment affect both NPV and IRR? Provide support for your assertions.
6-2. Capital budgeting can be affected by exchange rate risk, political risk, transfer pricing, and strategic risk. Select a sector and specific company in the mid- large size range, and explain how each of these factors can affect capital budgeting. Which of these factors provides the greatest impact to your selected organization? What measure might one take to reduce adverse impacts of any or all of these factors?
7-1. Research publicly traded companies, selecting two companies in different sectors to provide a written comparison of the capital structure for each. Explain your conclusions on the similarities and differences. What factors can you suggest for why each company adheres to their chosen structuring mechanism?
7-2. Why is understanding the relationship between the cash conversion cycle (CCC) and net working capital important to the contemporary business executive? Explain ways in which executive decisions regarding CCC and net working capital can affect a company, both adverse and beneficial. Support your response with a specific example from the business world.