Assume you are the Director of Financial Planning and Analysis for your company. Make a recommendation to the CFO (me!) on how your company should approach capital budgeting and selection of projects for investment. Your recommendation can include discussion of any or all of the key topics studied in Chapters 10-14:

a) Preferred methodologies/tools (NPV, IRR, Payback)

b) Base Case, Scenario, & Simulation analyses

c) Real Options analysis

d) Impacts of Capital Structure and Leverage

What you choose to base your recommendation upon is less important than the articulation of the conceptual framework and the accurate application of that concept. Given this is a one-page recommendation, clearly you will not be able to incorporate all of the concepts above so pick one or two and demonstrate your comprehension of how it should be applied in financial analysis and capital budgeting.