Capital budgeting-incremental earnings-interest expenses

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Discuss some considerations that should be taken into account when doing capital budgeting. Incremental earnings, interest expenses, taxes, opportunity costs, externalities, sunk costs, cannibalization or erosion, depreciation, and salvage value; as well as others. For your first posting, explain in detail what defines capital budgeting. Then, explain how two of these considerations above affect capital budgeting.

Reference no: EM131186325

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