Capital budgeting is a complicated process that is essential to good investment decisions by a company. Please give an example of a capital budgeting decision a company might need to make.

Are there examples in using the cost of capital in personal life? When or how have you compared the cost of getting money to the potential benefit of that money?

Once a business computes its cost of capital, discuss how a manager might decide whether to take on a project or not.

Briefly review either your personal experiences and/or the financial literature to identify and present a description of one actual capital project/product failure and the reasons attributed to the failure. For those of you who do not have personal experiences the following are some illustrated examples of failed projects/products over the last 50 years you may want to look up and consider: -New Coke,- The Iridium Satellite Communication,- the Edsel automobile, Beta (vs. VHS), the Concord SST, and various Dot Coms. Feel free to research others.

Remember this is a short exercise – do not go overboard – a little bit of research and summation is all that’s required.

1) Share your short, concise description of the project and the major reasons you believe it failed.

2) In your opinion what 3-5 specific factors are the cause of GENERIC capital project analysis failure.

Please respond to each question and also be sure to reply to at least two classmates with a post that adds value to the discussion.