Why is the capital budgeting decision important?

Q: How to analyze capital budgeting decisions? Which measures are important and why?

A: Capital Budgeting process involve analyzing the cash in flow and outflow of a project, to determine…

Q: What information do we need for capital budget analysis?

A: A corporation's systematic method for analyzing possible large-scale expenditures or investments is…

Q: What are the advantages of using the NPV method of assessing capital budgeting projects over the Pay…

A: Capital budgeting analysis is useful to know which projects are profitable and which are not. There…

Q: Why are discounted cash flow methods of making capital budgeting decisions superior to othermethods?

A:

Q: What is linear programming for capital budgeting?

A: A linear programming model is characterized which is intended to decide the most practical financing…

Q: Define the term capital budgeting.

A: Capital budgeting is the planning process used by companies to determine whether an organisation's…

Q: be included in the capital budgeting decision because it is:

A: Given the cost is used for development and time and money is expended

Q: t are the different kinds of capital budgeti

A: Capital budgeting: Capital budgeting refers to the process of deciding between the various…

Q: In a capital budgeting study, explain why sunk costs should not be included, but opportunity costs…

A:

Q: Explain what is meant by the time value of money, and discuss its relevance to the capital budgeting…

A: Value of money means its purchasing power. It can also be explained as the quantity of goods that…

Q: How are cashflows important to capital budgeting?

A: Capital Budgeting process is a way for business to decide the long term economic and financial…

Q: Should capital budgeting decisions be made solely on the basis of project’s NPV?

A: Net present value is the method of capital budgeting, under this method the present value of future…

Q: “Only quantitative outcomes are relevant in capital budgeting analyses.” Do you agree? Explain.

A: Capital budgeting- It is also known as investment appraisal. It is the process which every business…

Q: Explain the process of capital budgeting.

A: Capital budgeting is the process by which future returns of a potential investment is calculated.…

Q: Discuss the method of capital budgeting that you would use in your ownbusiness. Justify your…

A: Capital budgeting is the process by which various investment alternatives can be evaluated. There…

Q: What is capital budgeting?

A: The Capital Budgeting, in simple terms, is the process of evaluating which project to choose in…

Q: Do you think capital budgeting is important? Justify

A: Capital budgeting is a process of investing into capital expenditure. Capital expenditure is an…

Q: What is a capital budgeting technique that generates decision rules and associated metrics for…

A: The capital budgeting technique help to evaluate the acceptibility and rejection of a particular…

Q: What is capital budgeting? Compare the advantages and disadvantages of various capital budgeting…

A: Capital budgeting is indeed the process by which a company evaluates potential large projects or…

Q: WHAT ARE THE PROBLEMS WITH IRR APPROACH TO CAPITAL BUDGETING?

A: IRR internal rate of return is very common method of capital budgeting decisions making.

Q: Define Capital budgeting.

A: Capital budgeting is used by management to know  which projects will give the best return during  a…

Q: What are the advantages of the PI method of capital budgeting?

A: The ratio that evaluates the profitability of the investment is term as the profitability index…

Q: What is the single best capital budgeting decision criterion? Explain.

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: What is the difference between scenario analysis and sensitivity analysis? How might you use each…

A: Capital budgeting is the process of selection of best project which will increase the value of the…

Q: What is the difference between capital budgeting screening decisions and capital budgeting…

A: Definition:   Capital budgeting: It refers to the long-term investment decisions that have been…

Q: 6f

A: Opportunity cost: It reflects the profits that a person, financial specialist, or company loses in…

Q: Explain Capital Budgeting? Mention the decision-making process of all capital budgeting techniques.

A: Capital budgeting refers to the process of making investment decisions in capital expenditure.…

Q: What are the critical steps involved in the capital budgeting process?

A: Capital budgeting process : Capital budgeting is the process of choosing ideal investment project…

Q: What types of projects require the least detailed and the most detailed analyses in the capital…

A: Capital budgeting is a corporate method that determines future large ventures or investments.…

Q: Why is the NPV the primary capital budgeting decision criterion?

A: NPV( net present value) is a method to determine the current value of all the cash flows which are…

Q: One of the modern methods of Capital Budgeting is:

A: The correct answer is a. Profitability Index

Q: How is the estimation of relevant cash flows one of the most important parts of this…

A: Capital budgeting is the process a company follows to decide whether to purchase a fixed asset or…

Q: What is the major criticism of the payback and simple rate of return methods of making capital…

A: Cash payback method: Cash payback period is the expected time period which is required to recover…

Q: What is the major short coming of using the payback period as the only criterion in making capital…

A: ANSWER    the major short coming of using the payback period as the only criterion in making capital…

Q: Which is one of the most important parts of the capital budgeting process? Explain with an example?

A: The Decision-making phase is the most vital part of the capital budgeting process and it is…

Q: Should capital budgeting decisions be made solely on the basis of a project’s NPV?Explain.

A: Capital budgeting decisions are based on various factors in which NPV is one of the factors which…

Q: Discuss capital budgeting.

A: Financial capital is any economic resource measured in terms of money that entrepreneurs and…

Q: What two variables affecting capital budgeting would you consider the most when making investment…

A: Capital budgeting decisions involve deciding which long-term investment should be undertaken by the…

Q: What is the analytic hierarchy process (AHP), and how can it be used in making capital…

A: Capital Budgeting:  It refers to the long term investment decisions that has been taken by the top…

Q: 1. Why is the WACC used in capital budgeting?

A: Solution- Weighted Average Cost of Capital (WACC)-         The weighted average cost of capital…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.