This chapter taught us four different methods of performing capital budgeting: net present value, which combines with the profitability index as one method; the internal rate of return; the payback period; and the simple rate of return, also known as the accounting rate of return. The four methods of evaluating potential capital budgeting decisions presented in this chapter each have their pros and cons. Most organizations use a combination of the different tools to make decisions. If you were making a capital budgeting determination, what combination would you use?

For full credit, pick two methods that you would combine for budgeting decision making and discuss how the two methods complement one another by describing how the pros and cons of the two methods balance one another. Additionally, discuss which method you believe is best for making sustainable decisions and why.