Cost-Benefit Analysis and Capital Budget Decision Making
The effective evaluation and management of projects and investments are critically important to a firm, and the benefits of any investment should be greater than the cost of the investment.
- In your paper, compare and contrast two of the primary tools of cost-benefit analysis: Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PB).
- Discuss the relevance of cost-benefit analysis as a tool for capital budgeting decision making.
- Why is capital budgeting decision making an important process in operations management?
Your well-written paper should meet the following requirements:
- Be 2-3 pages in length, not including the cover and reference pages.
- Be formatted according to APA writing format!!!
- must be times new roman – 12pt font and double spaced with paragraphs indented
- must have running header (APA format)
- must have correct section headers
- must have conclusion paragraph
- Cite a minimum of 3-5 sources to support your responses, two of which are academic, peer-reviewed sources. These sources should demonstrate thoughtful consideration of the ideas and concepts that are presented in the course, and provide new thoughts and insights relating directly to this topic.
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