If there are two projects, one project need more development and will create more benefit because of the economics of scale, and the other project is available "off the shell" and will create more benefit in recent years but less later, what impact will we have on the analysis of the capital budgeting?

when we are analysing both the projects through the capital budgeting then we will try to analyse it through various methods which are considering for the time value of money and those products which are providing for higher net positive present value will be having a higher probability of being selected.

it can be seen that the first project is creating more benefit because of the economies of the scale and it can be used for the longer period of time and it is also requiring more development but second project is creating more benefit in the recent year and it is creating less benefit in the later years so, we will not just considered the quantitative aspects of both the project but we will also consider the qualitative aspect of boty projects so we will make the decision after discounting all the present value at the current and then we will derive whether to accept the project or select one of them or select none of them but most probably if there is a limitation related to infusion of capital in the company then we will select those projects which are providing the higher rate of return.

While doing the capital budgeting decision making, we should always try to consider the long-term benefits of the products and value generation and sustainability of the product in the long run so it will help the company in order to maximize the value in long run and hence there should be a proper analysis of each qualitative and quantitative aspects of various projects and time value concerns before selecting them.