This week, we pursued the accounting side of capital budgeting. This included revenues, costs, depreciation, taxes, etc. However, decisions should not always be made solely based on the bottom line. Investment in sustainable practices is one example. While it might be cheaper and more profitable from a capital budgeting perspective to use older technology (coal-burning energy for example), investment into environmental, social, and corporate governance (ESG) has gained momentum. The following TED talk discusses the investment reasoning and potential in sustainability: After watching the video, consider answering the following in your post:

1. What did you find interesting about investing in ESG in the video? Can this be related to concepts regarding capital budgeting and financial decision making?

2. How might a financial manager consider the externalities of a sustainable project when utilizing the capital budgeting process?

3. Could policy makers support investment in ESG and ultimately improve cash flows for corporations?