GRADED DISCUSSION WEEK 6

During week 6 we develop the theory and application of capital budget analysis. As capital budgeting essentially re-invents the company through major long-term expenditures it is arguably one of the most critical functions that financial management performs. However, as most of us have witnessed, many firms routinely experience significant failures in their selection of capital projects. Here is your assignment for your initial post:

1) Briefly describe and review one actual capital project/product failure either from your personal/work experiences, a web article, this week's learning resources, or other financial literature.

2) Please provide any financial information regarding the project that is available including initial investment, projected or actual cash flows, total dollars lost, etc.

3) What specific factors led to this failure? What could they have done differently to have a better result?

4) Are there any takeaways from this example that you could apply to your workplace, future career or business or even personal life?