Tag Archives | Managerial Economics

Capital Budgeting: Meaning, Need, Process and Classification | Firms | Economics

In this article we will discuss about:- 1. Meaning of Capital Budgeting 2. Need for Capital Budgeting 3. Process 4. Classification. Meaning of Capital Budgeting: Capital budgeting is the process of making investment decisions in capital expenditure. Capital expenditure is an expenditure, the benefits of which are expected to be received over a period of time exceeding one year. Some [...]

By Tanaya S|2018-08-01T10:47:23+00:00August 1, 2018|Capital Budgeting|Comments Off

Methods of Capital Budgeting: Traditional & Time-Adjusted Methods | Firms | Economics

The survival of a business depends upon management's ability to conceive, analyze, and select investment opportunities that are profitable. The firm must select such projects that maximize the returns of the business. Capital budgeting is the allocation of available resources to various proposals. It involves estimation of cost and benefits of a proposal, estimation of required rate of return and [...]

By Tanaya S|2018-08-01T10:47:23+00:00August 1, 2018|Capital Budgeting|Comments Off