Cost-Benefit Analysis and Capital Budget Decision Making

The effective evaluation and management of projects and investments are critically important to a firm, and the benefits of any investment should be greater than the cost of the investment.

1. In your paper, compare and contrast two of the primary tools of cost-benefit analysis: Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PB).

2. Discuss the relevance of cost-benefit analysis as a tool for capital budgeting decision making.

3. Why is capital budgeting decision making an important process in operations management?

Your well-written paper should meet the following requirements:

• Be 2-3 pages in length, not including the cover and reference pages.
• Cite a minimum of 3-5 sources to support your responses, two of which are academic, peer-reviewed sources.
• APA guidelines.