capital budgeting

Thought for the day:

Politics involved with spending the entire capital budget
Many managers try to spend their entire capital budget each year and ask for an increase for the following year. In a company with a culture of maximizing shareholder value, managers will return excess funds whenever there is a lack of positive NPV projects, and make a case for expanding the budget when there are multiple positive NPV opportunities.

So I wonder why some people never seem to get their budgeting to work efficiently. Wait what NPV? Some people in important places don't even know what NPV is or how to calculate it. Gosh!