Assignment:
Q1 What is capital budgeting and why is it important to business decisions?
Capital budgeting is a tool used in business to determine the financial viability of a potential project. Net present value, internal rate of return, payback, discounted payback, and modified rate of return are some of the calculations used once businesses have a reliable cash flow budget for their project.
Tasks:Respond to the following in 300 to 500 words:
Q1 What is capital budgeting and why is it important to business decisions?
Q2 Discuss how the information should be organized in a capital budgeting process, and who will use the information for decision-making.
Q3 What could go wrong with the capital budgeting process?
Q4 Provide an example of a capital budgeting process from an online source and explain the salient points of this example to the class.