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Without disclosing confidential information, please describe the process (you) or your corporation uses or used to make its (or your) decision.

Many of you work for companies and may have participated in the capital budgeting process or may or have experienced capital budgeting decisions in your own lives.

Without disclosing confidential information, please describe the process (you) or your corporation uses or used to make its (or your) decision. As an alternative to this question – please give an example of a real firm (in the news) pursuing a strategy (or projects) where you believe the project or strategy may not have a positive net present value.

For example — Walmart is expanding in the United States by building Neighborhood Marts. These are much smaller, more convenient (closer to where you live) stores that are supposed to win back customers from the “dollar” stores. I do not claim to be smarter than the management of Walmart but, I personally believe this to be a negative net present value project because I believe these stores will be expensive to operate and will cannibalize saliques at the existing Walmart stores.

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