he main challenge in capital budgeting is the identification of positive NPV opportunities. In other words, the whole idea of corporate investment is based on the notion that the law of one price does not hold for investment in real assets. That is, a company may have an opportunity to invest in a project that, once fully adjusted for risk, yields a return that is significantly higher than that of (virtually) riskless financial assets (such as U.S. government bonds).

What do you think?