Capital budgeting, Finance Basics

Definition of 'Capital Budgeting':

The process in which a business calculates whether projects such as building a new plant or investing in a long-term risk are worth pursuing. Oftentimes, a prospective project's lifetime outflows and cash inflows are assessed in order to calculate whether the returns generated meet an enough target benchmark.  

Also defines as "investment appraisal."

Posted Date: 2/14/2013 12:15:55 AM | Location : United States







Related Discussions:- Capital budgeting, Assignment Help, Ask Question on Capital budgeting, Get Answer, Expert's Help, Capital budgeting Discussions

Write discussion on Capital budgeting
Your posts are moderated
Related Questions
What are the types of Money and Bank Regulations? Types of Money : a. Commodity money b. A commodity-backed money c. Fiat money Bank Regulations: a. Deposit i

I need help with : an introduction to financial markets and institutions , 2 edition , brown, nesiba, burton

Dividend yield or Gordon's Model This model is used to determine the cost of various capital components in particular: Cost of equity - K e Cost of preferenc

Advantagesand Disadvantages of IRR Advantages of IRR It seems time value of money It seems cash flows over the whole life of the project. It is compatible along

Capital Market - Financial Markets These are markets for long term funds along with maturity time of more than one year. As like of financial instruments required here are deb

Commercial Banks - Banking Institutions These are financial institutions such accept deposits of money from the universal public, safeguard the deposits and create them availa

The organization performed very well during the last year and generated profit in each segment. In the food and beverage segment, the company has made 30% net profit and in rooms a

Basic economic order quantity (EOQ) model  This model is one of the oldest and most commonly used in inventory control. It is based on a number of assumptions:  The dem

Determine the Component of Return Rate of return from an investment consists of the two: (i) Yield: Interest or dividend received is called yield. (ii) Capital Appreci

Important points for Working Capital Cycle A lengthy working capital cycle is a sign of poor management of debtors and stock reflecting low turnover of debtors and stock and l