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  Capital budgeting and its importance

Capital budgeting and its importance for investors:

Common people do not know that management accounting offers a very scientific method that is very helpful to choose best investment projects. All people save a few money for their rainy days. They are too interested to invest it in various schemes for raising its principal amount. However due to ignorance of capital budgeting, they invest their money in uncertain and unprofitable projects and after such they lost all other good opportunity due to scarcity of money source.

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