Hey
I have always been fascinated with the world of financial management. With the latest union budget and the impending impact it will have on businesses across the county. I have done some research about what is capital budgeting. Take a look below to know interesting information on the topic.
What do you mean by capital budgeting ?
It is a process undertaken by businesses, organization where they make decisions about the overall budget and long term investment. The companies aim to decide whether their future projects will be profitable or not. This includes disinvestment, borrowing, loans from public or foreign governments etc.
What is capital budgeting in financial management ?
It is a process of calculating and deciding the expenditure in capital assets. It can also be seen as an allocation of funds towards future projects. Since, the ultimate goal for businesses is to make profit. Projections are made on the basis of research, past record and market analysis to minimize loss.
What do you understand by capital budgeting ?
This evaluation is a necessary part of business. Capital or funds/ assets are budgeted according to the needs and requirements of the organization. Economic feasibility of a capital investment is determined this way. Some of the methods are Payback Period, Discounted Payment Period, Net Present Value etc.
I hope now you know the answer to what is meant by capital budgeting.
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What is capital budgeting ?
Dhurav
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1
3 Year
2022-02-07T22:48:54+00:00 2022-02-07T22:48:55+00:00Comment
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