# capital budgeting decisions

A Capital Budgeting Decision may be defined as the firm’s judgment to spend its current money (Cash Flows) most resourcefully in the long term possessions in expectancy of an expected flow of remuneration over a series of years. Savings conclusion includes growth acquirement Modernization alternate New Product savings compulsory & interests savings It also include Outflows on R&D and major advertising campaign.

## Capital Budgeting Decisions With Uncertain Cash Flows

Capital Budgeting Decisions With Uncertain Cash Flows: Learning Objectives: Evaluate an investment project that has uncertain cash flows. The analysis in this chapter (capital budgeting decisions) has assumed that all of the future cash flows are known with certainty. However, future cash flows are

## The Use of Net Present Value(NPV) Method in Capital Budgeting Decisions – Discounted Cash Flows

The Use of Net Present Value(NPV) Method in Capital Budgeting Decisions – Discounted Cash Flows: Learning Objectives: Define and explain the net present value method. Evaluate the acceptability of an investment project using the net present value (NPV) method. What are the advantages and

## Income Tax and Capital Budgeting Decisions

Income Tax and Capital Budgeting Decisions: Learning Objectives: Include income taxes in a capital budgeting analysis. In our discussion of capital budgeting decisions in this chapter, we ignored income taxes for two reasons. First, many organizations do not pay income taxes. Not-for-profit organizations, such

## Future Value and Present Value Tables

Future Value and Present Value Tables Future Value Tables: Table 1: Future Value of \$1 Table 2: Future Value of Ordinary Annuity  (Annuity in Arrear – End of Period Payments) Present Value Tables: Table 3: Present Value of \$1 Table 4: Present Value of

## Present Value and Future Value – Explanation of the Concept

Present Value and Future Value – Explanation of the Concept: Learning Objectives: Understand present value concepts and the use of present value tables. Compute the present value of a single sum and a series of cash flows. A dollar received now is more valuable