PPT-Chapter 13 Capital Budgeting Techniques

After Studying Chapter 13 you should be able to Understand the payback period PBP method of project evaluation and selection including its a calculation b acceptance criterion c advantages and disadvantages and d focus on liquidity rather than profitability. 180 181 Key Concepts and SkillsUnderstand the effects of leverage on the value created by a projectBe able to apply Adjusted Present Value (APV), the Flows to Equity (FTE) approach, and the WACC metho MODULE 2 Capital Budgeting is a project selection exercise performed by the business enterprise. Capital budgeting uses the concept Capital budgeting uses tools such value, internal rate of return Gary Perdew. St. Lucie County Fire District. Overview. What is Budgeting?. Importance. Public . vs. Private . Policies. Budget Cycle. Language. Revenues. Fund Balance. Expenditures. Reports & Monitoring. MODULE 2 Capital Budgeting is a project selection exercise performed by the business enterprise. Capital budgeting uses the concept Capital budgeting uses tools such value, internal rate of return and Other Special Issues . 13. 13. .1. . Describe the capital budgeting process and explain its importance to corporate strategy.. 13. .2. . Identify and apply the main tools used to evaluate investments.. (. Eun. and . Resnick. chapter 18). Identify the . size. and . timing. of all relevant cash flows on a time line.. Identify the . riskiness. of the cash flows to determine the appropriate discount rate.. 1. Multinational Capital Budgeting. Extension of the domestic capital budgeting analysis to evaluate a Greenfield foreign project. Distinctions between the project viewpoint & the parent viewpoint when analyzing a potential foreign investment. Andrew Blazey and Ana Maria Ruiz. Public . Governance . Directorate. 15th Annual Meeting of . OECD-CESEE . Senior Budget Officials. 4-5 . July . 2019. Minsk, Belarus. Budgeting and Public Expenditure Division. Capital . Budgeting. Capital . budgeting is the making of long-run. planning decisions for investments in. projects and programs.. It . is a decision-making and control tool that. focuses primarily on projects or programs. . October 6, 2003. David Hackworth. Industrial Engineering Deptartment. University of Pittsburgh. One Parent Company –. Three (3) Subsidiaries . Question: How to allocate limited Capital Budget $?. Dr. James Mathew. Long term Investment Decisions (Capital Budgeting Decisions). The investment decisions of a firm are generally known as capital budgeting or capital expenditure decisions.. Capital budgeting decision may be defined as the firm’s... Semester. Unit-6. Capital Expenditure Decisions-I. Prepared by RAJA PAUL. Capital Expenditure Decisions-I. Concept and Meaning:. Capital-Expenditure decisions or Capital Budgeting may be defined as the decision-making process by which firms... Lecture 9 (chapter 5). SEPPA. 09 Aug 2016. 8/7/2016. 1. Project Cash flows . In most of . the investment decision . problems, we usually make an initial investment at the beginning of the project. Then this investment will make a series of cash... Nature/ Significance of Capital Budgeting Decisions. Purchase of a long-term capital assets with the objective to generate return. Involvement of huge funds. Irreversible. Long-term profitability/risk.