What do you mean by capital budgeting?

Question

Accepted Answer

Capital budgeting refers to the process of planning and evaluating long-term investment decisions.

It involves analyzing potential investment opportunities and determining their financial viability.
The goal is to allocate financial resources to projects that will generate the highest return on investment.
Methods used in capital budgeting include net present value (NPV), internal rate of return (IRR), and payback period.
For example, a company may use capital budgeting to decide whether to invest in a new manufacturing facility or upgrade existing equipment.
Capital budgeting helps in making informed decisions about long-term investments and managing financial resources effectively.

Accepted Answer

Payback which has no tvom. Nov who's is famous. Hence, APV in MBA is international project appraisal and in professional accountancy it considered cash flows less issue costs I guess

Accepted Answer

It is a process of evaluating and slecting long term investment that are in line with the goal of investors wealth maximization. Capital budgeting helps in to decide whether we should invest in particular project or not

What do you mean by capital budgeting?

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