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
The annual report and accounts for Astra Zeneca plc and Epistem Holdings plc and other relevant financial information are available in the ‘TMA 02 Resources folder' in the Assessme

Will you please define the working capital and Calculation of working capital? I need urgent help in my assignment. help me!

Q. How will you conclude the cost of capital from different sources? Ans. Implication of Cost of Capital: - Cost of capital of a firm is the least rate of return expected by it

To understand how treasury spot rates are used to calculate the arbitrage-free value of the treasury security, we will take imaginary treasury spot rates (given i

Question 1: Policy implementation is the most critical stage of the policy process. Critically analyse some of the main constraints that hinder the implementation of public pol

Along the dimension of security, bonds can be classified into unsecured (straight) bonds and secured (mortgage) bonds. Unsecured bonds have no charge on any speci

They are issued in the local market by a domestic borrower and are usually denominated in the local currency. For example, US companies issuing bonds to US reside

Introduction When financial assets or bonds are pooled together and offered to the investors for receiving the inflow of funds from these underlying

A financial consultant obtains different valuations of my company when it discounts the Free Cash Flow (FCF) as opposed to when it uses the Equity Cash Flow. Is this correct? N

You are currently an Analyst working for a finance publication firm and as part of your responsibilities; you are required to provide a monthly forecast and analysis of certain com