Capital budgeting is a process used to evaluate whether a firm should invest in a new project or other long-term capital expenditure. Discussion Questions: Why is the capital budgeting process an important process that every organization should consider carefully? Compare and contrast at least four capital budgeting techniques. Which technique is considered as the best capital budgeting technique? Why? Describe the relationship between the cost of capital and the NPV. Explain how a change in the cost of capital can impact the IRR.