Capital Budgeting and Finance

Paper Summary:

The paper explains that capital budgeting is the process of project selection and lists the criteria for the most viable and desirable projects in which to invest capital. The paper discusses the concept of a "positive net present value" and how it is determined by a formula. An example of capital budgeting is provided in order to demonstrate how a positive net present value is determined from an initial capital investment. The paper also shows how while the capital budget provides mean figures, inflation, interest rates and the value of money are factors that impact the relative value of the capital budget terms.

From the Paper:

"Research cites examples of the most common potential projects for cash outlay as investment in property, plant, and equipment, research and development projects, large advertising campaigns. However, the range of potential capital expenditures, or investments, is virtually limitless, and new ways to invest are manifesting or being created on an ongoing basis in this day and age. The capitol budget or schedule on virtually any project requiring a capital expenditure that results in the generation of a future cash flow should be examined further by the manager of the capital budget."

Sample of Sources Used:

• "Capitol Budgeting." 2007: http://www.teachmefinance.com/capitalbudgeting.html
• "Capitol Budgeting." 2007: http://www.netmba.com/finance/capital/budgeting/
• "Capitol Budgeting Acme." 2007: http://acme.highpoint.edu/~jwehrley/ba333/Capital%20Budgeting.htm
• "Capitol Budgeting Investopedia." 2007: http://www.investopedia.com/terms/c/capitalbudgeting.asp
• "Cost of Capitol." 2007: http://www.teachmefinance.com/costofcapital.html

More papers on Capital Budgeting and Finance:

• Essay # 85602 : "Capital Budgeting"
• Analytical Essay # 125687 : "Capital Budgeting at Superior Living"
• Term Paper # 124737 : "Heathcare Accounting and Finance"

APA Citation:

MLA Citation: