3 Questions, 200-250 words each. At least reputable reference with APA format.
1. According to research, NPV and IRR are the most used methods of determining capital budgeting decisions. Discuss the positive and negative aspects of these and any other methods you deem relevant. Finally, state the method you would use as a financial manager and explain why.
2. Gertrude and Gus are retired and have a substantial amount of savings in CDs. With rates near zero they are looking for a higher return and a broker suggests a large company with a long history of paying dividends (30 years). The dividend yield is a whopping 5.4%. The company maintains a constant payout ratio of 80%. They are considering putting a significant portion of their savings in this stock and want your expert financial advice. Please provide Gert and Gus the positives and negatives of such a purchase.
3. Is there a conflict between maximizing shareholder wealth and never paying bribes when doing business abroad? If so, how might you explain the firm’s position to shareholders asking why the company does not pay bribes when its foreign competitors in various nations clearly do so?