Discussion

Analyze the reasons why the short-term project that you have chosen might be ranked higher under the NPV criterion if the cost of capital is high, while the long-term project might be deemed better if the cost of capital is low.  Determine whether or not changes in the cost of capital could ever cause a change in the internal rate of return (IRR) ranking of two (2) projects.

Take a position for or against TFC's decision to expand to the West coast.  Provide a rationale for your response in which you cite at least two (2) capital budgeting techniques (eg, NPV, IRR, Payback Period, etc) that you used to arrive at your decision.