Ranked Projects
The real value of capital budgeting is to rank projects. Most organizations have many projects that could potentially be financially rewarding. Once it has been determined that a particular project has exceeded its hurdle, then it should be ranked against peer projects (e.g. - highest Profitability index to lowest Profitability index). The highest ranking projects should be implemented until the budgeted capital has been expended.
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Famous quotes containing the words ranked and/or projects:
“The trumpets sound, the banners fly,
The glittering spears are ranked ready;
The shouts o’ war are heard afar,
The battle closes thick and bloody;
But it’s no the roar o’ sea or shore
Wad mak me langer wish to tarry;
Nor shout o’ war that’s heard afar,
Its leaving thee, my bonnie Mary.”
—Robert Burns (1759–1796)
“One of the things that is most striking about the young generation is that they never talk about their own futures, there are no futures for this generation, not any of them and so naturally they never think of them. It is very striking, they do not live in the present they just live, as well as they can, and they do not plan. It is extraordinary that whole populations have no projects for a future, none at all.”
—Gertrude Stein (1874–1946)