Sales forecast accuracy
NPV Not accepted Capital Budgeting Technique in 1967
ARR preferred
Payback Period is primary
IRR Gaining acceptance
No competing capital project realted to Jell-O facility
Controller has strong influence over methodology & policy in Capital Budgeting
Jell-O has no
Expected sales volume will not grow beyond production capacity in current facility
Price of product is sufficient to cover fully allocated producction costs + margin
Erosion of Jell-O will be included in financial calculations
