Oftentimes, investments in sustainability projects do not meet traditional investment selection criteria. Suppose you are a manager
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Oftentimes, investments in sustainability projects do not meet traditional investment selection criteria. Suppose you are a manager and have prepared a proposal to install solar panels to provide lighting for the office. The payback period for the project is longer than the company’s required payback period, and the project’s net present value is slightly negative. What arguments could you offer to the capital budgeting committee for accepting the solar energy project in spite of it not meeting the capital selection criteria?
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