Assignment

Capital budgeting is a complicated process that is essential to organization’s making good investment decisions.

 

Please give an example of a capital budgeting decision a company might need to make. 

 

Once a business computes its cost of capital, how does a manager decide whether to take on a project or not?

 

What considerations might inform the decision?

 

This discussion is more interesting if we review financial literature to identify and present a description of one actual capital project/product failure and the reasons attributed to the failure.

 

Some illustrated examples of failed projects/products over the last 50 years you may want to look up and consider:

-New Coke,

– The Iridium Satellite Communication,

– the Edsel automobile, Beta (vs. VHS), the Concord SST, and various Dot Coms.

 

Feel free to research others.

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