Capital Budgeting is an important aspect of any corporation that requires analysis and strategic thinking. What are the major project classification categories and provide a few examples of when these projects are used? Also, what are some capital budgeting projects you have seen in action at your current or previous place of employment?
Capital Budgeting is an important aspect of any corporation that requires analysis and strategic thinking. What are the major project classification categories and provide a few examples of when these projects are used? Also, what are some capital budgeting projects you have seen in action at your current or previous place of employment?
Capital budgeting is the process of deciding what amount of capital is needed, where to invest the capital, and how much to invest. It includes those projects that require capital. Some of the examples of capital budgeting are construction of new plants and large amounts of investment in outside business. After the capital budgeting decision is taken, the project is approved or rejected. In the process of capital budgeting, a company uses cash inflow and out flow of the project.
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