Meaning of capital budgeting, Financial Management

Meaning of Capital Budgeting

Decisions relating to irreversible commitment of funds to projects whose profits are to be reaped over a time span longer than the current accounting year are known as capital expenditure / capital budgeting decisions.  They generally are decisions related to fixed / long term assets whose investment decisions involve current outlay of money but returns are spaced over a period of time longer than one year.  These profits may be either in the form of increased revenues or reduced costs.

Posted Date: 10/15/2012 9:05:00 AM | Location : United States







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

Write discussion on Meaning of capital budgeting
Your posts are moderated
Related Questions
Explain why we measure a project's risk as the change in the CV. We compute a project's risk as the change in the coefficient of variation for the reason that this focuses on t

The Selling Process The four key elements that constitute the selling process are: (i) identification of prospective buyers, (ii) selection of the type of selling process to be

Controlling is an essential management function as efficient control mechanisms ensure that the performance of the company increases over time through the incorporation of feedback

Bond are formal certificates issued by the companies or government agencies acknowledging the indebtedness. To the investors, they are proofs of investment. In th

The capability of an asset to be converted into cash as quickly as possible without any discount to its value.

Question 1: In the financial system, the capital markets consist of the Bond and the Equities Market. Develop this statement. Question 2: (a) Discuss why banking regula

a. You only need to complete the 2012 column, leave the 2011 column as is. b. Base you net income and certain other information needed from the income statement you completed in


Hedge funds are short two types of funding options. Describe in detail what these options are. Describe why these options become more valuable during a financial crisis. During

What reasons do governments frequently give to justify the decision to not permit price to ration goods? (a) Price gouging is bad. (b) Income is unfairly distributed. (c) Some