You are a Finance Manager for a major utility company.

Respond to the following in a minimum of 175 words:

Think about some of the capital budgeting techniques you might use for some upcoming projects.

Discuss at least 2 capital budgeting techniques and how your company can benefit from the use of these tools.

Compare your approaches to other students responses. How were they similar or different? Why might you use the different approaches shared by your classmates?

Using the net present value rule can help you decide if a project is worth investing in or help you decide between multiple projects. Using the internal rate of return is another popular budgeting method. This rule states that you should invest in any project offering a rate of return that is higher than the opportunity cost of capital. Both of these methods discount cash flows using specific formulas that give you a black and white answer of yes you should invest, or no you shouldn't.