Capital Budgeting
- Budgeting
Steps and Disadvantages of Decision Tree Approach in Capital Budgeting
The decision-tree approach is useful analytical technique in capital budgeting to evaluate risky investment proposal involving sequential decisions. The technique…
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Required Information For Capital Expenditure Decisions
One of the most important decisions that confront the executive of a business enterprise relate to the replacement, renewals and…
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Methods of Capital Budgeting Under Risk and Uncertainty
A capital expenditure decision may not be sound, if taken on the basis of only one set of assumptions as…
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What is Capital Rationing in Financial Management
Business firms commonly find that there are more acceptable projects than they have the money to undertake, Thus, numerous projects…
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Concept of Time Value of Money in Financial Management
Time Value of Money – The time value of money is an important consideration in capital budgeting decisions. Whenever a…
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Other Considerations Made in Managerial Decisions on Investment Proposals
In most firms there are more investment proposals for projects than the firm is able or willing to finance. Some…
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Advantages and Disadvantages of Discounted Cash Flow Methods
Discounted Cashflows Methods: Another method of computing expected rates of return is the present value method. The method is popularly…
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Advantages and Disadvantages of Accounting Rate of Return Method
Accounting Rate of Return Method is otherwise known as Financial Statement Method or Un-adjusted Rate of Return Method. According to…
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Different Methods of Ranking Investment Proposals
Different Methods of Ranking Investment Proposals: In most business firms, there are more than one investment proposals for a capital…
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Major Steps in Capital Budgeting Process in Financial Management
Capital budgeting decisions of a firm have a pervasive influence on the entire spectrum of entrepreneurial activities they require a…
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