What types of projects require the least detailed analysis

timer Asked: May 3rd, 2014
account_balance_wallet $5

Question Description

What types of projects require the least detailed and the most detailed analysis in the capital budgeting process and why?    150 words

Tutor Answer

School: University of Maryland

The investment decisions of a firm are generally known as the capital budgeting, or capital expenditure decisions. The firm’s investment decisions would generally include expansion, acquisition, modernization and replacement of the long-term assets. Sale of a division or business (divestment) is also as an investment decision.

The capital budgeting has following characteristics:

The exchange of current funds for future benefits.

The funds are invested in long-term assets.

The future benefits will occur to the firm over a series of years.

Hence the projects which are of long term nature and above characterstics require detailed analysis in the capital budgeting processes.


1.Management accounting by Khan & Jain

flag Report DMCA

Excellent job

Similar Questions
Related Tags

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors