Draw and explain the impact of budget deficit on loanable fund market and on the macroeconomic indicators.

Q: List out the evaluation techniques used in capital budgeting. According to you which technique is…

A: Capital Budgeting:- Capital budgeting is a process of examine various investment opportunities for a…

Q: Describe the capital budgeting process.

A: The Capital Budgeting process is the process of planning which is used to evaluate the potential…

Q: List at least three important behavioral issues related to the capital budgeting process

A: The question is based on the concept of behavioral biases in capital budgeting process , capital…

Q: Conclusion on the capital budge

A: The question is based on the concept of capital budgeting techniques and financial benefits of…

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 is the meaning of the time value of money? And why the financial manager uses it to decide on…

A: According to the concept of time value of money (TVM), the value of money available at the present…

Q: What is the function of a cash budget? A capital budget?

A: A cash budget is a financial plan or plan of projected money receipts and payment during the period.…

Q: What is the importance of a cash flow budget or report

A: Ans. A cash flow budget or report helps a company to understand how much cash is coming into the…

Q: Identify two simplifying assumptions associated with discounted cash flow methods of making capital…

A: Capital budgeting: Capital budgeting is a process by which the management can plan and evaluate the…

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: Explain the term capital budgeting.

A: Capital Budgeting is used in strategic decision making. Capital budgeting is a process used to…

Q: Define the term capital budgeting.

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

Q: What are the basic benefits and purposes of developing pro forma statements and a cash budget?

A: Budgeting and preparing the pro forma statements are two different accounting processes. But…

Q: We discussed the use of sensitivity analysis and simulation analysis in the context of estimating…

A: Cash flow can be inwards or outwards. Cash flow includes the fallow of cash only, it does not…

Q: If the Fed targets on federal fund, what is the results for quantitative targets such as…

A: Federal Funds rate is the target interest rate set by the Federal Open Market Committee at which…

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: What is meant by the term payback period? How is this criterion sometimes used in capital budgeting?

A:

Q: The policy implications of the Keynesian income determination model are as follows Counter-cyclical…

A: Answer:-  Keynesain income determination:- The equilibrium level of national income is established…

Q: What s the function of a cash budget? A capital budget?

A: The cash budget is prepared by the company in order to estimate the cash receipt and disbursement…

Q: An introduction to capital budgetin

A: Capital budgeting : Capital budgeting is the process of choosing a project that is profitable for a…

Q: Define each of the following terms:a. Capital budgeting; payback period; discounted payback period

A: Capital Budgeting is a decision making process in which company requires to evaluate long-term…

Q: Why are human factors critical in budgeting?

A: budgeting is such a process under which a detail plan of spending of the businesses is done in order…

Q: What role does the pro forma cash budget play in financial forecasting.

A: Given: The role of pro forma cash budget in the financial statement.

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 is the function of a cash budget? A capital budget?

A: Budgeting can be defined as the process of estimating future performance of a company. Budgets are…

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 are real options, and why are they important to capital budgeting?

A: A real option is a valuable right to make or else abandon some choice that is available to the…

Q: Identify “relevant” cash flows that should and should not be included in a capital budgeting…

A: Before investing in new projects or assets, profitability of the project is evaluated by using…

Q: what is the budget development process?

A: A budget is an instrument for planning, executing, and managing operations in order to make the most…

Q: finance

A: Public Finance can be defined as managing the debt, revenue & other expenditure of the country…

Q: Why is the cash budget regarded as a primary tool in short-run financial planning? Discuss.

A: A business needs funds to run its operations. It needs money to run its day-to-day operations and to…

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: Explain monetary policy.

A: Monetary policy is the plan of action of a country's central bank (CB). The main aim is to control…

Q: Discuss capital budgeting.

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

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: What does it mean when the cash budget forecasts a cash defi ciency?

A: Cash budgets are the budgets prepared to estimate the use of cash which will be done in the near…

Q: The following are discounting techniques in capital budgeting, except?     discounted payback…

A: Solution:- Definition:- Capital budgeting is useful for making investment decisions in long term…

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

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

Q: why is the cash budget regarded as a primary tool in short term financial planning? Discuss

A: Explanation:- The cash budget is 1 of the most important instruments for working capital management…

Q: Financial modelling tools for budgeting

A: "Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

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.