ICWAI -Over Veiw Of Capital Budgeting

Started by TechShristi, August 11, 2012, 05:30:35 pm

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Over Veiw Of Capital Budgeting

Capital budgeting is a required managerial tool.  One duty of a financial manager is to choose investments with satisfactory cash flows and rates of return.  Therefore, a financial manager must be able to decide whether an investment is worth undertaking and be able to choose intelligently between two or more alternatives.  To do this, a sound procedure to evaluate, compare, and select projects is needed.  This procedure is called capital budgeting.


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