Data necessary for capital expenditure decision
Data necessary to take capital expenditure decisions The following data are to be collected in order to take the decision of capital expenditure. 1. Initial Investment: It is otherwise …
Tag: capital budgeting
Process of Capital Budgeting
Process of Capital Budgeting Capital budgeting is a complex process as it involves decisions relating to the investment of current funds for the benefits to be available in future. …
4 Important Kinds of Capital expenditure proposals
Kinds of Capital Expenditure Proposals The following.are the kinds of capital expenditure proposals. 1. Independent Proposal: Independent proposal means that there is no alternative proposal to choose the best …
Capital Budgeting Decisions | Scope, Process
Scope of Capital budgeting decisions Generally, the capital budgeting decisions are related to long term investments. The general scope of capital budgeting decisions are discussed briefly below. 1. Mechanization …
Capital budgeting | Meaning, Objectives, Features, Limitations, Rationale
Meaning of Capital Budgeting Capital Budgeting is the process of making investment decision in fixed assets or capital expenditure. Capital Budgeting is also known as investment, decision making, planning …
Types of Capital Budgeting Decisions
Types of capital budgeting decisions Generally the business firms are confronted with three types of capital budgeting decisions. (i) The accept-reject decisions; (ii) mutually exclusive decisions; and (iii) capital …
Present Value Factor Calculation | Steps involved | Calculator
Steps involved in calculation of Present Value Factor (P.V.F) The following steps are involved in the preparation of present value 1. Cash outflows of the first year is taken …
Accounting Rate of Return (ARR) Method | Advantages | Disadvantages
Advantages of Accounting Rate of Return Method (ARR Method) The following are the advantages of Accounting Rate of Return method. 1. It is very easy to calculate and simple …
Payback Period Method | Formula | Merits | Demerits | Suitability
Understanding Payback Period method This method is also known as pay out, pay off or recoupment period method. Under this method, the original investment of the project should be …
Factors influencing capital expenditure decisions
The following are the factors which are highly influencing Capital Expenditure decisions. Factors influencing capital expenditure decisions 1. Availability of Funds All the projects are not requiring the same …