Capital budgeting plays an important role in planning for capital expenditures.

Capital budgeting plays an important role in planning for capital expenditures.

Prior to beginning work on this discussion, read Chapter 12: The Capital Budgeting Decision in your textbook. Capital budgeting plays an important role in planning for capital expenditures. Regardless of one’s role or department in an organization, it is important to be familiar with the capital budgeting process in order to determine the financial viability of any projects or proposals. Your textbook presents three primary methods financial managers use to rank capital investment proposals. Summarize each method, and assess its advantages and disadvantages.