What is Capital Budgeting?
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Answer / m.s.s.v.sri kumar
Budgeting for longterm resources may be termed as Capital
budgeting. Decisions for accepting certain project can also
be termed as capital budgeting. There are two models in
capital budgeting. 1) Traditional and 2) Modern.
Under the Traditional model the capital budgeting can
be done on 1) Pay back period method and 2) Accounting
rate of return method (ARR)
Under Modern technique model it can be done on 1) Net
present value method; 2) Profitability Index method; 3)
Internal Rate of Return method. (IRR)
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Answer / ramana
capital budgting refers to the a long term funds invest in
assets.
| Is This Answer Correct ? | 13 Yes | 1 No |
Answer / anil
capital budgting is long term invesment in the market or in
the assets
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Answer / skanda
Capital Budgeting decisions involve decisions related to long term capital investments like in Fixed assets and Working Capital is investment decisions related to current assests (CA-CL).
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Answer / yadaram sudha
Capital budgeting is the planning process used to determine
whether a firm's long term investments such as new
machinery, replacement machinery, new plants, new products,
and research development projects are worth pursuing. It is
budget for major capital, or investment, expenditures.
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