Nature of Capital Budgeting Homework Help
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What is Capital Budgeting?
Capital is the bulk of monetary amount decided, required for investing in an organization or business. This capital is responsible for various set-ups and purchases along with marketing and advertisement also. These investment decisions in capital expenditures can be sorted out and implied by the process of capital budgeting. The benefits of such expenditures are received by the company or business over a period of time. In this article for Nature of capital budgeting homework help we discuss the topic in detail.
Characteristic of Capital Budgeting
Capital budgeting is done prior to the investment and usually on paper taking all the scenarios in account. One of the important characteristics are that this is done at one point of time in the business while, the benefits of it are enjoyed at multiple point of times. The following examples shown in the Nature of capital budgeting homework help article are related to capital budgeting and expenditures
• Cost of acquiring permanent assets i.e. land, plant, machinery, tools etc.
• Cost to maintain fixed assets
• Cost of replacing the permanent assets
• R&D expenditures.
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Features of Nature of Capital Budgeting
The following features listed below by our Nature of capital budgeting homework help writers are worth a look
1. The exchange of current funds to the benefits of future are done in capital budgeting.
2. Usually non-flexible and long-term activity related funds are invested.
3. They involve usually huge amount of funds to be invested.
4. These decisions are irreversible in nature.
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