Determine the value of a potential investment

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Question - Capital budgeting is the process to determine the value of a potential investment/project to a firm. That is, it weeds out good investments from the bad. Evaluating capital budget projects is a critical function for any business professional.

Using what you learned from the Capital Budgeting for Video Games you completed earlier in this unit and the resources provided in this discussion, prepare a post that addresses the following:

What are the strengths and weaknesses of the capital budgeting tools (financial statistics)?

Why do business professionals use all three tools?

How did performing the calculations work for you?

What did you learn from completing the calculations?

Is the information derived from the tools intuitive, or does it need further analysis?

Reference no: EM133072279

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