| 12th March 2016 03:41 PM | |
| Shaleen | Re: Capital budgeting PPT MBA Capital budgeting, or investment appraisal, is the planning process used to determine whether an organization's long term investments such as new machinery, replacement machinery, new plants. Points of making PPT on Capital budgeting Capital Budgeting 1. Investment decision making process, which involves fixed assets. Capital Capital budget 2. Long-term decisions Sizable cash outlays Difficult to reverse 3. Important to firm’s future Profitability Growth and Survival Future direction The Five Stages of Capital Budgeting Stage 1: Investment screening and selection Stage 2: Capital budgeting proposal Stage 3: Budget approval and authorization Stage 4: Project tracking Stage 5: Post completion audit Steps Estimate the CFs (inflows & outflows). Assess the riskiness of the CFs. Determine the appropriate discount rate, k = WACC for project. Find NPV and/or IRR Accept if NPV > 0 and/or IRR > WACC. Investment Evaluation Techniques Payback Period (PB) Discounted Payback Profitability Index (PI) Internal Rate of Return (IRR) Modified Internal Rate of Return (MIRR) |
| 12th March 2016 03:39 PM | |
| Unregistered | Capital budgeting PPT MBA Hello sir I am making power point presentation on Capital budgeting so please provide me some points to make it easy. |
