Corporate Finance: Capital Budgeting
capital budgeting process - -the process of identifying and evaluating capital projects (projects where the cash flow to the firm will be received over a period longer than one year) -4 administrative steps of capital budgeting process - -1. idea generation 2. analyzing project proposals (decision to accept/reject) 3. create firm-wide capital budget 4. monitoring decisions and conducting post-audit -5 key principles of capital budgeting process - -1. decisions based on cash flows, not accounting income 2. cash flows based on opportunity cost 3. timing of cash flows is important 4. cash flows analyzed on after-tax basis 5. financing costs reflected in project's required rate of return
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- Geüpload op
- 18 mei 2023
- Aantal pagina's
- 2
- Geschreven in
- 2022/2023
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- Tentamen (uitwerkingen)
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- Vragen en antwoorden
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corporate finance capital budgeting
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