431 As of now I do not personally know of projects that use these two capital

431 as of now i do not personally know of projects

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Q3: Why do we analyze independent projects and mutually exclusive projects differently?Q22: Do you have any real-world questions/ examples/ cases/ news reports/ comments/ stories about corporate capital budgeting?Q21: Will the capital budgeting techniques (i.e., NPV, IRR) to be used to evaluate the projects funded by the federal stimulus funds? Economic stimulus consists of attempts by governments or government agencies to financially stimulate aneconomy. An economic stimulus is the use of monetary orfiscal policy changes to kick start growth duringa recession. Governments can accomplish this by using tactics such as lowering interest rates, increasinggovernment spending and quantitative easing, to name a few. While Net present value is a capital budgetingmethod that is likely the most correct capital budgetingmethod that business owners can use in evaluating whether toinvest or not invest in a new capital project. It is more correct from a mathematical point of view and a time value ofmoney point of view than either payback period or discounted payback period. It is even more correct thanthe profitability index and internal rate of return.For both Government and Private investment NPV is said to be the best single criterion to use.Q20: Generally, how will the low oil price affect corporate capital spending?We are definitely seeing the low oil price impacting our capital spending, and the purchases of our customers:Our customers first: They are spending less money on equipment purchases with our company because the low priceof oil is preventing them from creating ROI's that justify a capital spend. because the Oil prices aren't driving the big profits, the Oil companies aren't spending the big bucks to allow them to bring more reserves out of the ground.
Ourselves: We have seen a large downturn in orders from our O&G customers. as a result, our P/L statement is seeing an impact and our response is to be more cautious about what we are making our investments in. Notably, with lower revenue streams, it is much harder to ask for more plant capacity. Normally in a booming O&G economy, we can't make product fast enough. Now we have excess capacity and certainly don't need to make capital expenditures to increase our capacity.

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