for the analytical discussion on the tools for capital budgeting.Indeed having a clear idea about what tools to be used in order to make an evaluation of the options and situation would go a long way in making it easier for managers to look for the right tools and analyze the options through them. Apart from these tools, I would direct your attention to thethree prime factors, i.e., the time, the investment size and the cost of capital which every decision maker need to keep an eye onto make any financial decision.

As financial managers, it is quite natural that you would start your search for the best option or the right investment by comparing these three basic elements of the projects to each other. The tools like NPV, IRR etc would only help putting things in perspective as you make the required calculations and assessment criteria.

the questions:

Would you agree that no financial decision is possible without knowing these three basic variables? How do you interact with these variables if you have ever been involved in financial decisions? Examples or experience would be appreciated ? and references for further understanding and reading