The Capital Budgeting of Capitaland

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Executive summary In this report, we will discuss about the capital budgeting of CapitaLand, one of the largest real estate companies in Asia. Business activities and financial background of CapitaLand will be mentioned in this report, also with the evaluation of two potential mutually exclusive capital investments as well as the objective of these investments for this company. This report also contents the analysis of four main different capital budgeting techniques used in the investments for supporting decision making process. Definition, formula of each technique will be given along with the figure of the investments as well as its advantages and disadvantages. The numeric data (initial investment, cash flows…) used for the…show more content…
The Gross Profit figure also increased from 1,010.65 million in 2009 to 1,265 million in 2010, which is developed by 25.12%. Although the Total Operating Expense increased by 8.46%, the Operating Income still get an increase up to 22.154% compare to the year ended 2009. Finally, the Net Income in 2010 rose up by 20.91%, from 1,052.96 million in 2009 to 1,273.14 in 2010. For the fifth consecutive year, CapitaLand has recorded the Net Profit after tax and minority interests exceeding S$1 billion. Over the last five years, CapitaLand has achieved total Net Profit 7.4 billion. This profitability is the result of the Group’s aggressive growth strategy, and focus on the productivity of capital. During the year, the Group continued to invest for future growth by committing over S$6 billion of new investments. 2. OBJECTIVES Singapore is Southeast Asia's most important financial center and trades enter pot. Singapore also has the very high level infrastructure development in people's living standard, housing, education and transport among in Asia, attracts numerous investors and tourists every year. Base on Singapore’s characteristics of business environment

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