Question: In developing a capital budgeting portfolio, there are times when a project with a lower return is squeezed in to the budget but a higher-return

In developing a capital budgeting portfolio, there are times when a project with a lower return is squeezed in to the budget but a higher-return project is excluded. How can this be fair? Wouldn't this result in project managers inflating expected returns?

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Including a project with a lower return while excluding one with a higher return might seem unfair on the surface but there are various factors to con... View full answer

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