Capital Budgeting Battlecards for Review Meetings
Use concise principle-based responses to common capital review objections.
Sunk-cost objection We already spent too much to stop now. A sponsor is using past spend to justify new capital. Your line Past spend explains history; the approval decision should test whether the next dollar creates value from today forward. Do not argue that the past spend was foolish; that turns the meeting defensive. It separates accountability for past spend from the relevant go-forward cash-flow decision. Payback objection This one pays back fastest, so it should win. A short-payback project has lower NPV than a slower alternative. Payback is a useful liquidity screen; NPV tells us which option creates more…
Sign up free — one personalized lesson every day, matched to your role and goals.
Already have an account? Sign in