Describes the methods of capital budgeting, Financial Management

Q. Describes the methods of Capital Budgeting?

Capital Budgeting: - Capital Budgeting is the procedure of making decisions for investment in long-term assets. It is a method of deciding whether or not to invest the funds in a particular asset the advantage of which will be available over a period of time longer than one year.

Methods of Capital Budgeting: - There are two criteria's for capital expenditure decisions:

(A) Accounting Profit Criteria

(B) Cash Flow Criteria

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Posted Date: 8/3/2013 3:59:07 AM | Location : United States

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