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- Use an example to explain to show why capital budgeting relies on cash flows rather than net income?Explain the behavioral issues involved incapital budgeting and identify how companiestry to control the capital budgeting process.Why does capital budgeting rely on analysis of cash flows rather than on net income? Use an example to explain.
- Explain the advantages and disadvantages of cash budgeting with appropriate literature reviewwhy is the cash budget regarded as a primary tool in short term financial planning? DiscussCapital budgeting can be affected by factors such as exchange rate risk, political risk, transfer pricing, and strategic risk. Select a mid- or large-sized business organization and explain how each of these factors can affect its capital budgeting. Which factor poses the greatest threat to your selected organization and why? What measures can stakeholders take to reduce adverse impacts of these factors?
