Capital Budgeting

detonator budgetING -The planning and control of enceinte expenditures. -The process in which a business pick ups whether projects such as structure 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 crop to determine whether the returns generated meet a sufficient target benchmark. also know as investment appraisal. CAPITAL EXPENDITURES ?refers to developed expenditure of funds the purpose of which is to lower cost and cast up moolah income for several years in the future. CLASSES OF CAPITAL EXPENDITURES ? surrogate INVESTMENTS ? expansion INVESTMENTS ?PRODUCT-LINE OR NEW MARKET INVESTMENTS ?INVESTMENTS IN rubber eraser AND/OR ENVIRONMENT PROJECTS ?STRATEGIC INVESTMENTS ?OTHER INVESTMENT valuation ?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 spen ds 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 extra ?REVISING PLANS CAPITAL BUDGETING SYSTEM ?PREPARATION AND SUBMISSION OF BUDGET ?APPROVAL BUDGET ? quest FOR APPROPRIATION ?SUBMISSION OF hand REPORTS ?POST APPROVAL REVIEWS BUDGET REQUESTS ?are those made to complicate in the corporate budget capital projects which are mat to be desirable by those in the lower constitution level. APPROVAL OF THE BUDGET ?is a process which requires the chase: ? comput! e request are forwarded to top oversight. ?Top management decides which projects to advise to the control panel of directors. ?Top management sends recommendations to the notice 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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