Explain your recommendations about the choice of capital projects to the business owners, comprising the two founders and private investors.

In order to recommend the best capital projects for a business, it is necessary to consider numerous factors in order to make an informed decision. First and foremost, it is necessary to evaluate the long-term goals of the business. What are their objectives? How much growth do they anticipate over a given time period? Once these questions have been answered, the next step is to identify what kinds of resources will be required in order to meet those goals. This can include equipment, personnel, materials and services as well as information systems needed for developing efficient operation processes. After this has been determined and evaluated against current financials statements of the company (e.g., income statement, balance sheet) strategies must be identified that will link short-term operations with long-term strategic plans (DeVoe & Pfeffer 1996).

The use of financial tools such as NPV (net present value), payback period and IRR (internal rate of return) can help assess how potential investments may affect future cash flows or returns on investment in terms of costs or benefits associated with them. Therefore, these tools can help determine which project provides better returns in relation to another by comparing costs versus expected revenues from each option chosen based on current economic conditions. These calculations measure risk by assessing cash flow estimates at different points throughout the lifetime of a project thereby helping decide which one should be undertaken first or whether all should be done simultaneously taking into consideration budget constraints (Gibson 2012). Thus these evaluation techniques become invaluable when making decisions regarding any kind of capital intensive spending since they allow us distinguish between good investments from bad ones in an objective manner while also being able capturing both tangible and intangible components associated with each investment (Payne et al 2004; Luehrman 1998).

References
DeVoe S., & Pfeffer J,. 1996. The External Control Of Organizations: A Resource Dependence Perspective” 2nd edn.; San Francisco Free Press.
Gibson C,. 2012.. Corporate Financial Management 4th edn.;London:Pearson Education
Luehrman T., 1998 “Choice Of Investment Projects” Harvard Business Review; March–April
Payne J W,, Bettis R M ,& Hesterly W S 2004 Strategic Management And Business Policy 11Th Ed ; Boston Ma:Mc Graw Hill