The crux of capital budgeting is profit maximization.
Kinds of capital budgeting.
Toady we will discuss the different types of capital budgeting.
Capital budgeting is used by companies to evaluate major projects and investments such as new plants or equipment.
The increase in revenues can be achieved by expansion of operations by adding a new product line.
There are two ways to it.
Capital budgeting decision is a simple process in those firms where fund is not the.
Capital budgeting decisions have placed greater emphasis due to the following.
Its effects will extend into the future and will have to be endured for a longer period than the consequences of current operating expenditure.
A capital budgeting has long term implications.
Either increase the revenues or reduce the costs.
1 accept reject decisions.
Kinds of capital budgeting decisions.
The process involves analyzing a project s cash inflows and outflows to.
Let us make an in depth study of the kinds and planning period of capital budgeting decisions.
Reducing costs means representing obsolete return on assets.
The most significant reason for which the capital budgeting decisions is taken is that it has long term implications i e.