1. Define capital budgeting, explain why it is important, and state how project proposals are generally classified?
Capital budgeting is a process of determining whether certain long term project are worth investment or not.
It is a process of evaluating potential expenditures that are inclined towards determining whether certain amount to be spent in fixed assets or not.
It is important as it involves Investment for longer periods and it involves huge sum of money and large amount of risk so, it is very important to analyse projects before Investments.
Projects proposal are generally considered using various methods like-
A. Internal rate of return
B. Profitability index
C.Net present value
D. Accounting Rate of return
E. Payback period
These proposals can be classified as
1.Accept Reject decisions- It involves direct acceptance or rejection.
2. Mutually exclusive decision- It involves decisions which are made between alternatives
3. Capital Rationing decision- It is situation where funds are not that much and investment opportunities are many.
1. Define capital budgeting, explain why it is important, and state how project proposals are generally...
Discussion Post 1. Why is the capital budgeting decision such an important process? 2. Why capital budgeting is more important than capital structure and working capital management?
Explain why it is important to understand that capital budgeting is subject to the validity of the forecasted data. Additionally, explain whether this reduces the reliability of these types of tools. Are there any other alternatives, or are these tools some of the most reliable that currently exist?
explain why it is important to understand that capital budgeting is subject to the validity of the forecasted data. Additionally, explain whether this reduces the reliability of these types of tools. Are there any other alternatives, or are these tools some of the most reliable that currently exist? Also need the source
Define the most important capital budgeting techniques. name at least two (2) capital budgeting techniques (e.g., NPV, IRR) that you used to arrive investment decision.
The topic is: Capital Budgeting identification: Identify the topic and explain why you believe the topic is important. Explanation: Explain the calculations or concepts, and how it can be used in decision-making. Application: Assuming your audience knows nothing about the topic, explain how to apply it: As an entry-level professional. As a mid-level professional. As an executive-level professional. Ethics: Identify 1 ethical issue related to this topic and explain how you would address it.
What is depreciation in the capital budgeting process? Why is it important to consider? How is it calculated? What property/assets can be depreciated? What is the relationship between depreciat ing an asset, and the terminal value of the asset?
How do we traditionally define capital budgeting in finance? What is the purpose of capital budgeting in a business firm, and how is it used?
5.1 Explain the process of capital budgeting. (3) 5.2 Why is the process of capital budgeting necessary? (2)
Define perception and why it is important? Explain how attitudes influence behaviour?
Q56 Explain why top management support is vital for MIS project proposals. [1 Mark] PLEASE DO NOT WRITE THE ANSWER, USE WORD FORMAT. NO PLAGIARISM WILL BE APPRECIATED.