Econ. J. of Hokkaido Univ.,
Vol. 39 (2010), pp. 39 - 50
Capital Budgeting Management Practices
Focus on the Use of Capital Budgeting Methods* —
Capital budgeting is one of the most important factors in the process of corporate decision-maki...
Capital Budgeting and Other Investment Decisions*
Fuqua School of Business
November 24, 2009
This chapter surveys the literature on the effects of behavioral biases on capital budgeting. A
large body of the p...
Literature review and project synthesis:-
The Delhi Airport Metro Express (DAME) is a Delhi Metro line from New Delhi Metro Station to Dwarka Sector 21, linking the Indira Gandhi International Airport. The line, also known as the Orange line is operated by the Delhi Airport Metro Express Pvt. Limit...
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This book explains the ﬁnancial appraisal of capital budgeting projects. The coverage extends from the development of basic concepts, principles and techniques to the application of them in increasingly complex and real-world situations....
School of Management
Blekinge Institute of Technology
THE IMPORTANCE OF THE PAYBACK METHOD IN CAPITAL BUDGETING DECISION.
Alaba Femi, AWOMEWE & Oludele Olawale, OGUNDELE
Supervisor: Anders Hederstierna
Thesis for the Master’s degree in Business Administration Fall/Spring 2008...
Capital Budgeting Decision Process
The maximization of shareholder wealth can be achieved through dividend policy and increasing share price of the mark value. In order to derive more profits, our company shall invest potential investments which always cover a number...
A SURVEY OF CAPITAL BUDGETING
PRACTICES IN CORPORATE INDIA
Satish Verma, Sanjeev Gupta and Roopali Batra
The present study aims to unveil the status of capital budgeting in India particularly after the advent of
full-fledged globalisation and in the era of cutthroat competition, where compan...
Poor and Unrealistic capital budgeting has long been the bane of socio-economic
development in Africa and of course, Nigeria. The issue of capital, investment and how it
was undertaken in the capital budgeting process thus constitutes a major concern of this
paper. Even in the midst of v...
Capital budgeting is the process of evaluating and selecting long-term investments that are consistent with the firm's goal of maximizing owner wealth. A firm using capital budgeting, their goal is to see if there fixed income will cover itself for profit. Fixed i...
Capital budgeting (or investment appraisal) is the planning process used to determine a firm’s expenditures on assets whose cash flows are expected to extend beyond one year such as new machinery, equipments, etc. It is also the process of identifying, analyzing and selecting investment projects w...
Understanding the Business Value of Information Systems
Information systems can have several different values for business firms. A consistently strong information technology infrastructure can, over the long term, play an important strategic role in the life of the firm. Looked at less grandly,...
New Heritage Doll Company: Capital Budgeting
In mid-September of 2010/ Emily Harris, vice president of New Heritage Doll Company's production division, was weighing project proposals for the company's upcoming capital budgeting meetings in October. Two proposals stood out based on their potential...
Capital Budgeting Exercises
ABC Industries is considering a proposed project whose estimated NPV is $12 million. This estimate assume that economic conditions will be “average.” However, the CFO realizes that conditions could be better or worse, so he performed...
1. A company is considering undertaking a project with an initial cost of $125,000. The project will pay cash flows of $30,000 for the first two years, followed by $25,000 for three following years. This project will recover its initial cost in approximately how many years?...
GLOBALIZING THE COST OF CAPITAL AND CAPITAL BUDGETING AT AES
1. How would you evaluate the capital budgeting method used historically by AES?
2. If you implemented the methodology suggested by Venerus, what would be the range of discount rates one would use around the world?
3. Does this make...
REV: OCTOBER 23, 2006
Globalizing the Cost of Capital and Capital Budgeting at AES
In June 2003, Rob Venerus, director of the newly created Corporate Analysis & Planning group at The AES Corporation, thumbed through the five-inch stack of financial results from subsidia...
MEANING OF CAPITAL BUDGETING
Capital budgeting is the making of long term planning decision for investment fixed assets and their financing. Capital budgeting decision is concerned with current investment that will pay for itself and yield an acceptable rate of return over its li...
Capital budgeting is a complex process and there are five broad phases. These are planning, analysis, selection, implementation and overview.
The planning phase involves investment strategy and the generation and preliminary screening of project proposals. The investment strategy provide...