When it comes to investing business capital, a financial manager would want to know whether that investment is a good one. The capital budgeting techniques reviewed this week provide the financial manager with tools to make good investment decisions.

Consider this week's instructor video. Imagine that you are a financial manager for a medium-sized company, and discuss the following:

Describe how you would use capital budgeting techniques to determine whether a business Investment is a good idea.

Give an example of a business investment venture and how you would use capital budgeting to ensure it is a good investment.