In considering what we have learned thus far regarding the importance of determining the cost of capital as well using capital budgeting tools, explain why it is important to understand that capital budgeting is subject to the validity of the forecasted data. Additionally, explain whether this reduces the reliability of these types of tools. Are there any other alternatives, or are these tools some of the most reliable that currently exist?

In response to your peers, discuss other options that may be available as opposed to the capital budgeting techniques discussed. Also, explain your reasoning should you have a differing viewpoint from the peers regarding the efficacy of capital budgeting techniques.