As a finance manager for a utility company, the two key tactics I would use to evaluate the financial stability of upcoming projects, would be Net a present Value $($NPV$)$ and Internal Rate of Return $($IRR$).$

NPV is s technique that helps in determining the present value of cash flows generated by a project, discounted at the company's cost of capital. It accounts for the time value of money, offering a clear picture of the project's contribution to wealth. Utility companies, dealing with long$-$term, capital$-$intensive projects, benefit greatly from NPV analysis by identifying projects that promise returns exceeding their costs.

IRR calculates the discount rate at which the net present value of all cash flows from a particular project equals zero. This method is useful for utility companies since it allows comparison of the profitability of different projects, independent of their scale. Projects with an IRR exceeding the company's required rate of return are usually pursued. This technique helps prioritize projects based on their potential to generate shareholder value, essential in the capital$-$intensive utility sector.

How can I add to this in a class discussion? How could you apply this to some capital budgeting techniques?