公司理财讲义2分析.doc

Solutions to Chapter 10 Project Analysis 1. a. The capital budget mitigates the problem of overoptimism by project sponsors by awarding lower-level managers on the basis of net present value and contribution to value. b. The capital budget mitigates the problem of inconsistent forecasts of macroeconomic variables by establishing forecasts of economic indicators, both macro-level and business-specific, that are used in all project analyses. c. The capital budget mitigates the problem of a bottom-up process by reflecting both capital budgeting and strategic planning. Senior managers som