Capital Budgeting in Practice
To discuss capital budgeting in a case when capital is rationed
To discuss capital budgeting in inflationary conditions
To use capital budgeting techniques when projects have unequal lives
To include the conditions of risk in the project evaluation criteria
To throw light on various aspects of managerial options and computation of cash flows in such scenarios
To discuss capital budgeting process of multinational corporations.
The preceding chapter deals with the principles and techniques of capital budgeting. However, the problems concerning capital budgeting are not as simple and straightforward in real life. Practical realities introduce complexities that make the capital budgeting decision more ...