You are the assistant to jack smith who is the CEO and board member of adventus, a small private company that makes a single product and is mainly owned by the smith family that has no diversified assets. Jack is aware that some family board members are ignorant of how capital decisions are made and has asked you to provide a short note on this matter using the broad headings:

Which procedure(s) are best for evaluating capital projects at adventus?

Which principle should underlie the choice of a discount rate for Adventus?