A. decisions are based on cash flows, not accounting income.B. cash flows should be analyzed on a pre-tax basis.C. opportunity costs should be excluded from the analysis of a project. 正确答案:A 分享到: 答案解析: The five key principles of the capital budgeting process are: Decisions ...
Definition of Capital Budgeting Decisions Capital budgeting assists in the investment decisions regarding assets that will have an impact on more than one year. Some capital budgeting models use cash flows that are discounted for the time value of money. The time value of money recognizes that a...
What is budgeting? Should capital budgeting decisions be based on cash flows or revenues and expenses? What is zero-based budgeting? What is a non-discount method in capital budgeting? What are some of the methods for evaluating capital expenditures? What is net working capital? Related...
Chapter 7: Capital Budgeting Decisions
A typical capital budgeting decision involves a large up-front investment followed by a series of smaller cash inflows. A typical capital budgeting process is focused around following basic principles: 1) Decisions are based on Premium Corporate finance Net present value Investment 1226 Words 5 ...
Chapter 8 Capital Budgeting Decision Criteria:8章资本预算决策标准 热度: 页数:13 Capital Structure Decisions - Complete Case:资本结构决策-完整的案例 热度: 页数:4 a decision rule to minimize daily capital charges in决策规则,以尽量减少日常资本费用 热度: 页数:30 第11章资本预算决策 热度:...
Examples of Capital Budgeting Decisions We’ve already written about some examples of capital budgeting, but just to make sure we’re clear on the topic, here are a few more. For example, not only investing in equipment, but new technology can be a capital investment. Maintaining existing equ...
Examples of a firm's capital budgeting decisions include the decision to replace all of the firm's personal computers, to expand the size of the production facility, to buy a corporate jet, to expand production into two new product lines, and so on. Examples of a firm's financing ...
What Is the Primary Purpose of Capital Budgeting? Capital budgeting's main goal is to identify projects that produce cash flows that exceed the cost of the project for a company. What Is an Example of a Capital Budgeting Decision? Capital budgeting decisions are often associated with choosing to...
There are drawbacks to using the payback metric to determine capital budgeting decisions, however. The payback period doesn't account for thetime value of money (TVM). Simply calculating the payback provides a metric that places the same emphasis on payments received in year one and year two. ...