Capital budgeting process, finance, Other Engineering

Assignment Help:
Capital budgeting process:
When investing in a long term assets, the project has been evaluated in term of its profitability and expected cash flow in the future. The capital budgeting process involves six steps as follows:
1. Calculate the cost of the project.
2. Estimation of the expected cash flows from the project in the future. Also calculate the residual value of the asset at the end of its life.
3. Calculate the probability distribution of the cash outflows.
4. Determine the present value of expected cash inflow
5. Determine the present value of cash inflow
6. Compare the present value of cash inflow with the cash outflow with the cash outflow. If the present value of cash inflow is higher than the outflow accept the project (Capital budgeting process, project analysis 2010).

Related Discussions:- Capital budgeting process, finance

Low pressure turbine clearance control valve - aircraft, Low pressure turbi...

Low pressure turbine clearance control valve: At take-off and low altitude the valve is in its normal closed position allowing cooling airflow to the core compartment. When an

3d sketch , I am a chemical engineering foundation year. I need your help ...

I am a chemical engineering foundation year. I need your help with my homework, its 3D sketch by using Google sketchup program?? I have not use it before. Or any other 3D sketch p

Deadlock based problem in operating system, Deadlock based problem in opera...

Deadlock based problem in operating system# Deadlock usually occurs between a known set of processes that end up waiting on each other. If we cannot prevent or avoid deadlock, anot

Resolving power and rayleigh criterion of resolution, Q. Explain Rayleigh c...

Q. Explain Rayleigh criterion of resolution. What is meant by resolving power of grating? Ans.   Resolving Power (i)  Meaning of Resolution : The resolving power of

#title urban and regional planning.., name and elaborate the decision probl...

name and elaborate the decision problems in urban and regional planning?

Aeroengines - cfd, Essentially, the strategy of CFD is to replace the conti...

Essentially, the strategy of CFD is to replace the continuous problem domain with a discrete domain using a grid domain with a discrete domain using a grid. In a continuous doma

Embedded system, I have an assignment of engine control unit (hardware desi...

I have an assignment of engine control unit (hardware design and programming) if you have an expert.....

Finance question, Say that a buyer of bonds values good bonds at $500 and v...

Say that a buyer of bonds values good bonds at $500 and values bad bonds at $250. Sellers of both good and bad bonds value them at $350. If the fraction of good sellers and bad s

General, why should an aircraft maintenance technician be familiar with wel...

why should an aircraft maintenance technician be familiar with weld nomenclature

Thermo electric thermometer, how thermoelecteric thermometer is contructed ...

how thermoelecteric thermometer is contructed and how it working

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd