Provide a rationale for your response in which you cite at least two (2) capital budgeting techniques.

Strayer fin534 discussions week 6

The two main capital budgeting techniques used to perform project finance deals are Net Present Value (NPV) and Internal Rate of Return (IRR). NPV takes into account the time value of money, while IRR is focused on maximizing returns. In order to ensure a successful project finance deal, these two techniques must be utilized in order to identify whether or not it is financially viable. Governmental support can help create a better environment for project finance by providing incentives such as tax breaks or guarantees that can improve the financial returns and reduce the risk associated with projects. This will increase the likelihood that projects will result in positive NPV and IRR figures, making them more attractive investments for lenders and investors.