O'Reilly logo

The AMA Handbook of Financial Risk Management by John J. HAMPTON

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter10Capital Budgeting Cash Flows

Capital budgeting is the decision-making process used by companies to evaluate long-term investments in large capital assets. It also covers decisions to acquire other firms, either through the purchase of their common stock or through the purchase of a group of assets that can be used to conduct an ongoing business. Capital budgeting describes the firm’s formal planning process for the acquisition and investment of capital and results in a capital budget that is the firm’s formal plan for the expenditure of money to purchase fixed assets.

Organizations make investment decisions within the framework of a strategic vision that should be leading the organization to achieve financial goals. The framework for ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required