Capital Budgeting

pileus BUDGETING OR CAPITAL EXPENDITURE PROJECT SYNOPSIS 1.MEANING & DEFINATION 2.FEATURES 3.KINDS OF CAPITAL EXPENDITURE 4.PROCESS OF CAPITAL BUDGETING 5.METHODS OF EVALUATION MEANING AND DEFINITION Planning & Control of gravid expenditure is termed as Capital Budgeting. Capital Budgeting is an Art of livelihood Assets that are worth more than they cost to achieve a predetermined Goal i.e. Optimising the wealth of the Business Enterprise. Capital Budgeting is the handle of Identifying Analysing and selecting investment projects whose returns are expected beyond one twelvemonth. The Capital Budgeting involves a current outlay or serial publication of outlays of cash resources in return for an anticipated flow of in store(predicate) benefits. In other words, the system of Capital Budgeting is employed to approximate expenditure decisions which involves current outlays but are likely to do benefits over a period of longer than one year. These benefits may be either in the form of increased revenues or reduction in cost. FEATURES 1.HEAVY SUBSTANTIAL OUTLAY 2.HIGH stage OF RISK 3.LARGE expect BENEFITS 4.HIGH GESTATION PERIOD i.e. comparative LONG TERM PERIOD BETWEEN INTIAL OUTLAY AND ANTICIPATED RETURN 5.IRREVERSIBLE DECISION. KINDS OF CAPITAL BUDGETING PROPOSALS OR CAPITAL EXPENDITURE PROPOSALS 1. needful investingS ex.

A) Pollution control Equipments B) Medical Dispensary C) Fire fighting Equipments D) foundling hospital in Factory 2.REPLACEMENT PROJECTS For cost reduction 3.EXPANSION PROJECT Ex.A) Increase the capacity B) increase the distribution network 4.DIVERSIFICATION PROJECT Ex. Producing new product. 5.RESEARCH AND DEVELOPMENT 6.STRATEGIC INVESTMENT PROJECTS PROCESS OF CAPITAL BUDGETING 1.IDENTIFICATION OF POTENTIAL INVESTMENT OPPORTUNITIES. hither planning body (committee or individual) estimate... If you want to get a full essay, order it on our website: Ordercustompaper.com

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