Explain the role of working capital in capital budgeting?



Explain the role of working capital in capital budgeting? ..

Answer / rakeshkumar

Capital budgeting is the process by which the financial manager decides whether to invest in specific capital projects or assets. In some situations, the process may entail in acquiring assets that are completely new to the firm. In other situations, it may mean replacing an existing obsolete asset to maintain efficiency.

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