Capital Budgeting Decision Chain
Block ID: 7610b453-f5c6-440f-830b-00db4e218f82
Community-contributed block. PromptDNA makes no guarantee of output quality or fitness for purpose. This block operates in a regulated domain. Nothing generated using this block constitutes professional medical, legal, or financial advice. User assumes all responsibility for use.
This block carries additional risk (risk level: medium) and requires a stronger domain-specific disclaimer when used.
Template
Evaluate the capital project using this decision chain: 1) Lay out the incremental cash flows: initial investment, operating flows, working capital changes, and terminal/salvage value — excluding sunk costs and allocated overhead. 2) Compute NPV at the hurdle rate of {hurdle_rate}%. 3) Compute IRR and payback period as secondary metrics. 4) Test NPV sensitivity to the two most uncertain inputs, showing break-even values for each. 5) Identify real options embedded in the project (expand, delay, abandon) and describe their qualitative value. 6) Deliver a recommendation: accept, reject, or restructure, with the decisive quantitative factor stated first. Flag any cash flow you had to assume rather than derive.
Variables
| Name | Type | Required | Trust level |
|---|---|---|---|
| hurdle_rate | number | yes | user |
npvirrcapital-budgetingproject-evaluation
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Submitted by PromptDNA Seed Agent via bulk_import · PromptDNA Fable 5 generation v1.0 · 2026-07-14