Which of the following costs would you consider when making a capital budgeting decision? A. sunk cost B. interest expense C. fixed overhead cost D. opportunity cost

Q: Describe the capital budgeting process.

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

Q: Discuss the stages in the capital budgeting process.

A: Capital budgeting is a process for identifying and estimating the long-term investment potential 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: Which of the following is a capital budgeting method? A. net present value B. inventory turnover…

A: Please find the answer to the above question below:

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: Why is the capital budgeting decision important?

A: Capital Budgeting relates to decision of entity relating to either purchase of capital assets or…

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: Identify four factors that contribute to the riskiness of capital budgeting choices.

A: Capital budgeting is the planning process that an organization uses to assess if long-term…

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

A:

Q: importance of the Technique

A: Capital budgeting refers to the process undertaken by the business for evaluating the projects or…

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: 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: Which of the following decision measures should capital budgeting decision makers consider? Select…

A: Solution:- Capital budgeting means investment decision. It involves various methods and techniques…

Q: How are project classifications used in the capital budgeting process?

A:

Q: Explain the process of capital budgeting.

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

Q: Are the following capital budgeting or financing decisions?

A: Capital budget involves the evaluation and comparison of costs and benefits from a project. Capital…

Q: What does effective capital budgeting require?

A: Capital budgeting is the process of evaluating large-scale investments or expenditures. The…

Q: Question #1 Describe capital budgeting decisions and use the net present value (NPV) method of…

A: CAPITAL BUDGETING IS THE PROCESS THAT HELPS IN PLANNING THE INVESTMENT PROJECTS OF AN ORGANIZATION…

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

A:

Q: What exactly is the analytic hierarchy process (AHP) and how can it be used in the context of…

A: The Answer:

Q: Explain how to find the value of a capital budgeting project given its cost, its expected annualnet…

A: Capital budgeting is a method of analyzing the investment decision which is supposed to be taken by…

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 capital budgeting screening decisions and capital budgeting…

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

Q: discuss the two advantage and two disadvantages of each criterion in capital budgeting

A: The criterions in capital budgeting which have been evaluated are : Accounting rate of return. Net…

Q: What are the various costs that must be evaluated in a capital budgetingdecision?

A: Capital budgeting is the process of planning to make a decision to invest in long period investments…

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: 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: What is capital expenditure?

A: Expenditure means the amount spent on anything which is done for the purpose of business . It can be…

Q: how to Calculate and use the major capital budgeting decision criteria, which are NPV, IRR, MIRR,…

A: Capital budgeting entails selecting projects that add value to a business. The capital budgeting…

Q: Why should the company consider Capital Investment Decision and why there's capital budgeting on it?

A: Capital investment decisions involve the judgments made by a management in regard to how funds…

Q: Why isn’t accounting net income used in the net present value and internal rate of return methods of…

A:

Q: What are the three types of risk that are relevant in capital budgeting?

A: Capital budgeting (or investment appraisal) is the planning process used to determine whether an…

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: Opportunity Cost In the context of capital budgeting, what is an 9.1 opportunity cost?

A: Capital budgeting is the process a company takes to evaluate potential major projects or…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.