[Verse 1] Sarah's staring at proposals, ten million on the line New machinery or factories, which future to define? Capital budgets aren't expenses, they're investments built to last Property, plant, equipment growing, not consuming what has passed [Chorus] NPV and IRR, payback period too Profitability index guides what we pursue Cash flows discounted, future value brought to now Capital budget essentials, learn the methods how [Verse 2] Tommy's calculating hurdle rates, cost of capital's the key Weighted average tells the story of what returns must be Strategic spending spans horizons, five or ten years out Asset acquisition planning leaves no room for doubt [Chorus] NPV and IRR, payback period too Profitability index guides what we pursue Cash flows discounted, future value brought to now Capital budget essentials, learn the methods how [Bridge] Sensitivity analysis, what if sales decline? Monte Carlo simulations test each bottom line Real options valuation when uncertainty's high Flexibility has value that you cannot deny [Verse 3] Mutually exclusive projects need a ranking scheme Net present value wins the race in every spreadsheet dream Independent projects pass if positive they score Capital rationing limits how much we explore [Chorus] NPV and IRR, payback period too Profitability index guides what we pursue Cash flows discounted, future value brought to now Capital budget essentials, learn the methods how [Outro] Terminal value calculations, salvage what remains Long-term thinking pays dividends beyond accounting gains
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