Capital Budgeting

keen computeING -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 read to determine whether the returns generated meet a sufficient target benchmark. to a fault know as investment appraisal. CAPITAL EXPENDITURES ?refers to full-blooded expenditure of funds the purpose of which is to lower cost and addition moolah income for several years in the future. CLASSES OF CAPITAL EXPENDITURES ? reserve INVESTMENTS ? expansion INVESTMENTS ?PRODUCT-LINE OR NEW MARKET INVESTMENTS ?INVESTMENTS IN sentry go 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 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 duplication ?REVISING PLANS CAPITAL BUDGETING SYSTEM ?PREPARATION AND SUBMISSION OF BUDGET ?APPROVAL BUDGET ? quest FOR APPROPRIATION ?SUBMISSION OF pass REPORTS ?POST APPROVAL REVIEWS BUDGET REQUESTS ?are those made to acknowledge in the corporate budget capital projects which are matte to be desirable by those in the lower disposal level. APPROVAL OF THE BUDGET ?i s a process which requires the chase: ? ci! pher request are forwarded to top oversight. ?Top management decides which projects to barrack to the control panel of directors. ?Top management sends recommendations to the add-in 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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