Capital budgeting is a rather complex topic, and Im hoping we can ultimately help everyone understand exactly how to analyze Net Present Value (NPV) and Internal Rate of Return (IRR) for a potential project or investment. To start us out "gently" on this topic, we're interested in your general ideas and thoughts as to how, as a senior manager of a company, you might decide which projects you'll fund for the coming year. More specifically, let's say various members of your staff have submitted funding requests, or drafted internal project proposals, and there are five suggested projects that you could fund with each proposed project ranging from between $500,000 to $1,000,000. However, for the upcoming year, your budget only allows a total of $2,000,000 that can be spent on all projects, so there's no way youll be able to say "yes" to all of the projects on your staff members' "wish list." How might you decide which of these projects to fund?