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.
User
Font Size
Information