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1919 unread replies.1919 replies.Capital Budgeting Discussion Question
Capital budgeting is not only important to people in finance or accounting, it is essential to people throughout the business organization. For example, a marketing or production manager who is proposing a new product must be familiar with the capital budgeting procedures of the firm. If he or she is not familiar with the concepts presented in this chapter, the best idea in the world may not be approved because it has not been properly evaluated and presented. You must not only be familiar with your product, but also with its financial viability.
For this Discussion please assume that you’re a high-level executive that must make a decision as to whether or not you should invest in a project that will yield positive cash flows. Assume that the investment to be made is $$500,000
What methods would you employ to assist in you evaluating and making your decision.
Explanation & Answer
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Running head: CAPITAL BUDEGETING
CAPITAL BUDEGETING
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CAPITAL BUDEGETING
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Capital budgeting is very crucial for business entities on evaluating various projects they
undertake. Various methods are used to evaluate the projects that a firm wish to undertake in the
market. Business entities pursue different projects in a bid to boost their financial performance as
well as gain some competitive edge over their rivals in the market. Since the projects require a
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