[Verse 1]
When making choices, here's the key
Sunk costs are history, let them be
Only relevant costs matter now
Future cash flows show us how
Make or buy, we calculate
Variable costs help us relate
If outside price beats our variable cost
Then outsourcing wins, efficiency's not lost
[Chorus]
Future flows, not sunk cost woes
NPV shows which way it goes
IRR and payback tell the tale
Contribution margins never fail
When resources are constrained and tight
Divide by limits, see the light
Decision trees help us to see
The path to profitability
[Verse 2]
Special orders knock your door
Price below normal, should you explore?
If fixed costs are already covered here
Any contribution makes the path clear
But watch capacity, don't forget
Regular customers place their bet
Opportunity costs must factor in
Before you let that new deal begin
[Chorus]
Future flows, not sunk cost woes
NPV shows which way it goes
IRR and payback tell the tale
Contribution margins never fail
When resources are constrained and tight
Divide by limits, see the light
Decision trees help us to see
The path to profitability
[Bridge]
Break-even point where profits start
Fixed costs divided, that's the art
By contribution margin per unit sold
CVP relationships unfold
Sensitivity analysis shows the range
When key assumptions start to change
Scenario planning, best and worst
Keep your options well-rehearsed
[Verse 3]
Capital budgeting needs five tools
NPV positive breaks the rules
IRR exceeding hurdle rate
Payback period, don't be late
Profitability index over one
Accounting rate of return, we're done
Discount future cash back to today
Time value of money lights the way
[Chorus]
Future flows, not sunk cost woes
NPV shows which way it goes
IRR and payback tell the tale
Contribution margins never fail
When resources are constrained and tight
Divide by limits, see the light
Decision trees help us to see
The path to profitability
[Outro]
Relevant costs guide every choice
Let data be your strongest voice
From make or buy to capital plans
Analysis puts control in your hands