Theory and application of capital budget analysis

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During week 6 we develop the theory and application of capital budget analysis. As capital budgeting essentially re-invents the company through major long-term expenditures it is arguably one of the most critical functions that financial management performs. However, many firms routinely experience significant failures in their selection of capital projects.

Please 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. Examples include New Coke, the Betamax, the Concord. There are many to choose from.

Synthesize your one-paragraph position on what 3-5 specific factors you believe most likely to contribute to capital project analysis failure.

Reference no: EM133075990

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