Capital Budgeting

large(p) cypherING -The planning and control of enceinte expenditures. -The process in which a business pick ups whether projects such as construct 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 rank to determine whether the returns generated meet a sufficient target benchmark. besides know as investment appraisal. CAPITAL EXPENDITURES ?refers to significant 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 ? electrical switch INVESTMENTS ? expansion INVESTMENTS ?PRODUCT-LINE OR NEW MARKET INVESTMENTS ?INVESTMENTS IN precaution 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 fi rm 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 take place REPORTS ?POST APPROVAL REVIEWS BUDGET REQUESTS ?are those made to hold in the corporate budget capital projects which are matte to be desirable by those in the lower institution level. APPROVAL OF THE BU DGET ?is a process which requires the chas! e: ? compute request are forwarded to top oversight. ?Top management decides which projects to preach to the control panel of directors. ?Top management sends recommendations to the advance 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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