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Small Business Finance and Valuation
book

Small Business Finance and Valuation

by Rick Nason, Dan Nordqvist
September 2020
Beginner
184 pages
4h 46m
English
Business Expert Press
Content preview from Small Business Finance and Valuation

Chapter 8

Capital Budgeting

Capital budgeting is deciding which investments the business should make or, in other words, what the business should spend money on. Intelligent capital budgeting is at the core of a growing company. Conversely, foolhardy capital budgeting has led companies of all sizes to ruin. Capital budgeting is the financial function that most directly affects the strategic direction of the firm, and, indeed, the capital budgeting plan and the strategic plan need to be in synch for either to be successful.

Like most strategic financial decisions, capital budgeting is one-part science and one-part art. In this chapter we will go over several well-accepted practices for deciding which investments a company should choose. However, ...

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Publisher Resources

ISBN: 9781952538131