In Chapter 9 of The CFO Guidebook, we are introduced to the tools of capital budgeting. Making specific reference to what you read in that chapter, respond to the following questions:
Which metrics and methodologies are the most useful when evaluating a capital investment? Why?
How can finance leaders be more effective partners to managers and business leaders in developing capital budgets that align with the risk tolerance and mission of the organization?
What can be done to make sure everyone understands the connection between the strategy and the capital budget?