On any Annual Budget you would include your short term projections for revenues and expenses, mainly operational flows, and long term investments (or CAPEX) to invest in the future capacity, future performance and hopefully future revenues of you Company

Long term and Capital Expenditure investments are always challenging decisions for the Board of Directors, due to the sizes of fixed investments and its length comprising more than 1 yer or 1 budgetary period.

Once you convert the CAPEX investment proposed into cash-flows (inflows and outflows) of the investment: what do you think that should be your primary investment evaluating tool to decide if you invest or do not invest in a Capital long term asset:

1. NPV

2. IRR

3. None of the above but others: please disclose which others

4. All criteria are equal

In the discussion, please do not only pick one choice, but explain the reasoning behind your selection