Capital Budgeting

not bad(p) figureING -The planning and control of enceinte expenditures. -The process in which a business pick ups whether projects such as build 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 vagabond to determine whether the returns generated meet a sufficient target benchmark. also know as investment appraisal. CAPITAL EXPENDITURES ?refers to existent expenditure of funds the purpose of which is to lower cost and improver moolah income for several years in the future. CLASSES OF CAPITAL EXPENDITURES ? transposition INVESTMENTS ? expansion INVESTMENTS ?PRODUCT-LINE OR NEW MARKET INVESTMENTS ?INVESTMENTS IN gumshoe AND/OR ENVIRONMENT PROJECTS ?STRATEGIC INVESTMENTS ?OTHER INVESTMENT military rank ?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 establish REPORTS ?POST APPROVAL REVIEWS BUDGET REQUESTS ?are those made to imply in the corporate budget capital projects which are matt-up to be desirable by those in the lower scheme level. APPROVAL OF THE BUDGET ? is a process which requires the chase: ? c! ompute request are forwarded to top oversight. ?Top management decides which projects to remember to the control panel of directors. ?Top management sends recommendations to the lineup 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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