Bill Watts, president of Western Publications, accepts a capital budgeting project proposed by Division X. this is

Question:

Bill Watts, president of Western Publications, accepts a capital budgeting project proposed by Division X. this is the division in which the president spent his first 10 years with the company. ON the same day, the president rejects a capital budgeting project proposal from Division Y. The manager of Division Y is incensed. She believes that the Division Y project has an internal rate of return at least 10 percentage points higher than the Division X project. She comments. What is the point of all our detailed DCF analysis? If Watts is panting over a project, he can arrange to have the proponents of that project massage the numbers so that it looks like a winner. What advice would you give the manager of Division Y?

Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment... Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...