Capital Budgeting

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geting1.0 INTRODUCTION Capital budgeting plays an important role in a firm’s financial management, the selection of a project is of great importance because it required a very large capital expenditure which will have a significant impact on the financial performance of the firm. Therefore a mistake in capital budgeting process by a firm will cost them a long period of time. Capital budgeting can be defined or seen as a designed process which involves management of available resources to select long time investments that will generate high return on the investment of those resources, Brealey, R. A et al (2006). Companies are into businesses with the main aim of making profit, therefore, it is vital for companies to know how to evaluate…show more content…
International trade involves transactions between two countries and this can only be done with the use of exchange rate, for example an exchange rate of 3.650 Malaysia Ringgits to United State Dollar signifies that 3.650
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