12
Capital Budgeting
LEARNING OBJECTIVES
On completion of the study of the chapter, you should be able to understand:
What is Capital Budgeting?
Features and importance of Capital Budgeting.
Different types of investments.
Different types of Capital Budgeting decisions.
Evaluation criteria of Capital Budgeting decisions.
Concept and determination of present value and discounted cash flow.
Different Capital Budgeting techniques.
12.1 CONCEPT OF CAPITAL BUDGETING
Capital Budgeting is the technique of long-term planning and analysis of outflows and inflows of funds relating to some investment objectives. It is the planning of capital expenditure which provides return over a number of years. According to Charles T. Horngreen, ‘Capital Budgeting ...
Get Management Accounting now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
