Capital Budgeting

gravid figureING -The planning and control of enceinte expenditures. -The process in which a business pick ups whether projects such as building a new plant or investing in a long-term venture argon worth pursuing. Oftentimes, a future projects lifetime cash inflows and outflows are assessed in nightclub to determine whether the returns generated meet a sufficient target benchmark. besides know as investment appraisal. CAPITAL EXPENDITURES ?refers to straight expenditure of funds the purpose of which is to lower cost and join on moolah income for several years in the future. CLASSES OF CAPITAL EXPENDITURES ? exchange INVESTMENTS ? expansion INVESTMENTS ?PRODUCT-LINE OR NEW MARKET INVESTMENTS ?INVESTMENTS IN prophylactic AND/OR ENVIRONMENT PROJECTS ?STRATEGIC INVESTMENTS ?OTHER INVESTMENT rating ?is the process of estimating what something is worth. Items that are usually valued are a financial asset or liability. INVESTMENT ?is made when a firm spends some of its funds for the mental home of a project.

FORMS OF INVESTMENT ?INITIAL INVESTMENT ?LATER INVESTMENT OBJECTIVES OF CAPITAL BUDGETING ?ESTABLISHING PRIORITIES ?CASH PLANNING ? verbal expression PLANNING ?ELIMINATING duplicate ?REVISING PLANS CAPITAL BUDGETING SYSTEM ?PREPARATION AND SUBMISSION OF BUDGET ?APPROVAL BUDGET ? quest FOR APPROPRIATION ?SUBMISSION OF win REPORTS ?POST APPROVAL REVIEWS BUDGET REQUESTS ?are those made to intromit in the corporate budget capital projects which are matte up to be desirable by those in the lower arranging level. APPROVAL OF THE BUDGET ?is a process which requires the chase: ? reckon request are forwarded ! to top oversight. ?Top management decides which projects to advocate to the control panel of directors. ?Top management sends recommendations to the display board of directors. ?The board of directors approves or disapproves the recommendations. ?Top management informs projects sponsors of the action...If you want to get a full essay, order it on our website: BestEssayCheap.com

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