Pay-Offs and Risks of Capital Investments The three most important considerations in capital budgeting for long-term, high-expense projects are planning, e

Pay-Offs and Risks of Capital Investments The three most important considerations in capital budgeting for long-term, high-expense projects are planning, evaluation of alternatives, and financing. These considerations should be a visible part of any strategic investment plan. Planning includes carefully considering the potential pay-offs and risks of a project. The evaluation of alternative projects or programs comes about through applying appropriate decision-making techniques. Because of the long-term life and high expense of capital projects, proper financing usually necessitates effective debt management. In this Discussion, you ascertain how capital investment decisions are made in a specific public organization. Then, you recommend a major capital investment for this organization and analyze the potential pay-offs and risks associated with it. The Assignment must be in APA Format cited properly, 1.5 – 2 pages and include: A brief description of a major capital investment, e.g., property, buildings, building additions, equipment, software, or technology that will last more than a year, that you might recommend for the public organization. Describe how the use of cost benefit analysis could be used to determine if this investment is a financially sound one for the organization. Then, analyze its potential pay-offs and risks, and explain how the organization might mitigate those risks. Use these Resources which will be supplied to you: Mikesell, J. L. (2018). Fiscal administration: Analysis and applications for the public sector (10th ed.). Boston, MA: Wadsworth. Chapter 7, “Capital Budgeting, Time Value of Money, and Cost-Benefit Analysis: Process, Structure, and Basic Tools” (pp. 311-349)Chapter 15, “Debt Administration” (pp. 673-716)