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Advancements in Capital Budgeting Evaluation Practices: A Conceptual Analysis


Affiliations
1 Department of Management Studies, SUPRABHATH PG COLLEGE, Hyderabad, (A.P), India
 

Capital budgeting decisions are crucial to a firm's success for several reasons. First, capital expenditures typically require large outlays of funds. Second, firms must ascertain the best way to raise and repay these funds. Third, most capital budgeting decisions require a long-term commitment. Finally, the timing of capital budgeting decisions is important. When large amounts of funds are raised, firms must pay close attention to the financial markets because the cost of capital is directly related to the current interest rate.

This paper focuses on advances in Capital Budgeting Techniques theory and practice and its impact on the investment decisions at the same time focused on evaluation practices.


Keywords

Capital Budgeting Techniques, Payback Period, NPV, ARR, IRR, Cash Outlays, Etc.
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  • Advancements in Capital Budgeting Evaluation Practices: A Conceptual Analysis

Abstract Views: 318  |  PDF Views: 101

Authors

Tatikonda Neelakantam
Department of Management Studies, SUPRABHATH PG COLLEGE, Hyderabad, (A.P), India

Abstract


Capital budgeting decisions are crucial to a firm's success for several reasons. First, capital expenditures typically require large outlays of funds. Second, firms must ascertain the best way to raise and repay these funds. Third, most capital budgeting decisions require a long-term commitment. Finally, the timing of capital budgeting decisions is important. When large amounts of funds are raised, firms must pay close attention to the financial markets because the cost of capital is directly related to the current interest rate.

This paper focuses on advances in Capital Budgeting Techniques theory and practice and its impact on the investment decisions at the same time focused on evaluation practices.


Keywords


Capital Budgeting Techniques, Payback Period, NPV, ARR, IRR, Cash Outlays, Etc.

References