Scribd Logo
Upload

Welcome to Scribd!

  • 34 views

    Capital Budgeting

    Uploaded by

    Akatsuki no Yona
    This document summarizes capital budgeting, which involves allocating financial resources to investment opportunities. It outlines the capital budgeting process, factors that influence decisions, and traditional and discounted cash flow methods used. The significance is that effective capital budgeting empowers businesses to prioritize high-return projects that contribute to growth, though uncertainties require balancing analysis with risk management. In conclusion, capital budgeting is a dynamic process requiring financial, strategic, and risk expertise to make confident investment decisions.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Capital Budgeting

    Uploaded by

    Akatsuki no Yona
    34 views10 pages
    This document summarizes capital budgeting, which involves allocating financial resources to investment opportunities. It outlines the capital budgeting process, factors that influence decisions, and traditional and discounted cash flow methods used. The significance is that effective capital budgeting empowers businesses to prioritize high-return projects that contribute to growth, though uncertainties require balancing analysis with risk management. In conclusion, capital budgeting is a dynamic process requiring financial, strategic, and risk expertise to make confident investment decisions.

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document summarizes capital budgeting, which involves allocating financial resources to investment opportunities. It outlines the capital budgeting process, factors that influence decisions, and traditional and discounted cash flow methods used. The significance is that effective capital budgeting empowers businesses to prioritize high-return projects that contribute to growth, though uncertainties require balancing analysis with risk management. In conclusion, capital budgeting is a dynamic process requiring financial, strategic, and risk expertise to make confident investment decisions.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    34 views10 pages

    Capital Budgeting

    Uploaded by

    Akatsuki no Yona
    This document summarizes capital budgeting, which involves allocating financial resources to investment opportunities. It outlines the capital budgeting process, factors that influence decisions, and traditional and discounted cash flow methods used. The significance is that effective capital budgeting empowers businesses to prioritize high-return projects that contribute to growth, though uncertainties require balancing analysis with risk management. In conclusion, capital budgeting is a dynamic process requiring financial, strategic, and risk expertise to make confident investment decisions.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    Capital Budgeting

    Presented by Solanki Sarkar


    Roll no:-11900122155
    CSE Dept/ 2nd Year/ 3rd Sem
    Content
    • Introduction
    • Procedure of Capital Budgeting
    • Factors influencing
    • Methods
    • References
    Introduction
    Capital Budgeting is concerned with allocation of the firm’s scarce financial
    resources among the available market opportunities. The consideration of
    investment opportunities involves the comparison of the expected future
    streams of earnings from a project with immediate and subsequent streams
    of expenditure for it
    Procedure of Capital Budgeting
    In capital budgeting process.,, main points will be needed of implementing
    immediate plans, how much money will be needed of implementing
    immediate plans, how much money is available for its completion and how
    are the available funds going to be assigned to various capital projects under
    consideration
    Process
    1. Organization of Investment Proposal
    2. Screening the Proposals
    3. Evaluation of Projects
    4. Establishing Priorities
    5. Final Approval
    6. Evaluation
    Factors influencing Capital Budgeting
    1. Business Risk
    2. Company’s Tax Exposure
    3. Financial Flexibility
    4. Management Style
    5. Growth Rate
    6. Market Conditions
    Methods of Capital Budgeting
    Traditional methods
    Payback period
    Accounting rate of return method
    Discounted cash flow methods
    Net present value method
    Profitability index method
    Significance of Capital Budgeting
    The significance of effective capital budgeting cannot be overstated, as it
    empowers businesses to prioritize projects that promise the highest returns
    and contribute to sustainable growth.
    However, it's important to acknowledge that no method is foolproof, and
    decision-makers must account for uncertainties and external factors that
    could impact project outcomes.
    Conclusion
    In conclusion, capital budgeting is a dynamic process that requires a blend
    of financial expertise, strategic insight, and risk management acumen. By
    employing rigorous analysis and staying attuned to market dynamics,
    businesses can make confident investment decisions that pave the way for
    innovation, growth, and sustained success.
    References
    • https//:Investopedia.com
    • https//:En.Wikipedia.org
    • https//:extension.istate.edu
    • https//:quickbooks.inuit.com

    You might also like