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Capital Budgeting Discussion Questions: How do we really know if a project is a good project? – There are questions and predictions in evaluation, such as issues of scope, duration, estimation, application of MARR for existing versus new businesses, new g

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Capital Budgeting Discussion Questions: How do we really know if a project is a good project? – There are questions and predictions in evaluation, such as issues of scope, duration, estimation, application of MARR for existing versus new businesses, new geography. Multi division firms have diverse requests for capital across many businesses. What about maintenance capital versus expansion capital. Also, how do you know if the IRR determined for a project is “accurate enough”?


As a student Do some research on methods of economic evaluation and capital budgeting that are used by large firms in the field where engineers of your major are most employed.

 

114 Words  1 Pages
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