Discuss how the capital budgeting concept is used to determine how a new project [hiring a management employee or investing in a new product/service] is worthwhile.

Present an example of the application of capital budgeting decision-making in the context of net present value and/or internal rate of return.

2. For Module 5 - Opportunity Cost please discuss and comment on the following questions:

Explain and discuss the ‘opportunity cost’ concept as a strategic construct. How does opportunity cost relate to the notion of incremental cash flow for a project?

Present an example.

Answer rating: 100% (QA)

Solution 1 Capital budgeting is related with long investment decisions It involves making a large investment in initial years of the project and then ... View the full answer