Different Kinds of
Capital Budgeting That Can Improve
Your Decision-Making Ability
Capital budgeting is a technique used
to select the potential project for
increasing the value of the company.
The purchase of the fixed assets and
the benefit is related to it.
It is influenced by the acceptable
and non-acceptable rate of returns.
Mainly concerns for maintaining
communication with the
community and make the best
returns. Students, who need
capital budgeting assignment help
must watch the complete video.
Three Types of Capital Budgeting
Accept or Reject
Decisions
Mutual Exclusive
Decisions
Capital Budgeting
Decisions
Accept or Reject Decisions
The project that might bring the
promising results would be considered
for the execution plan and examined.
Otherwise, it would get rejected. The
net present value(NPV) method is
utilized for this purpose. If the value is
greater than zero, then the project is
accepted or if it is less than zero then
it is rejected.
Mutual Exclusive
Decisions
In this, the project that are
interdependent are accepted, if
one of the projects have a major
share of profit then the another
project with least benefit can be
considered for the evaluation.
Certain tactics are implemented for
finding the best alternative and
eliminating the one that would
result in less profit.
Capital Budgeting
Decisions
It is also known as capital
rationing. It is a simple process
utilized by the company that has a
fixed budget capital for a certain
project to maximize the profit. a
certain group of investments is
considered in descending order
concerning the high rate of returns
and accepted for gaining the expected
profits.
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