### What is the most critical step in capital budgeting process

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1. What is the most critical step in the capital budgeting process? Why are there no "absolute" answers to capital budgeting decisions?

2. How does a firm assess a new capital project? How would models of project value such as NPV and IRR incorporate changes in economic outlook?

#### What is the discount rate applicable to division

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Moraine, Inc., has an issue of preferred stock outstanding that pays a \$4.95 dividend every year in perpetuity. If this issue currently sells for \$94 per share, what is the re

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