The overall objective of capital budgeting is to maximise the profitability of a firm or the return on investment. ....
The main factors which, influence capital investment are:....
The important steps involved in the capital budgeting process are Project generation, (2) Project evaluation, (3) project selection and project execut....
Capital budgeting involves capital rationing. This is the available funds that have to be allocated to competing projects in order of project potentia....
The factors that give rise to the need for capital investments are:....
A capital expenditure is an expenditure incurred for acquiring or improving the fixed assets, the benefits of which are expected to be received over a....
Capital budgeting decisions are of paramount importance in financial decisions, because efficient allocation of capital resources is one of the most c....
There are innumerable factors that influence the financial decision. They are classified as external factors and internal factors.....
Further where the company is desirous of mobilizing funds from outside sources, it is required to pay interest at fixed period. ....
Financial decisions refer to decisions concerning financial matters of a business firm. ....
Finance comprises of blend of knowledge of credit, securities, financial related legislations, financial instruments, financial markets and financial ....
Profit maximization is basically a single-period or, at the most, a short-term goal. ....
Wealth Maximisation refers to all the efforts put in for maximizing the net present value (i.e. wealth) of any particular course of action which is ju....
The term ‘profit maximization’ implies generation of largest amount of profits over the time period being analysed, secondary to Prof. Peter Druck....
Goals act as motivators, serve as the standards for measuring performance, help in coordination of multiplicity of tasks, facilitate in identifying in....
Finance guides and regulates investment decisions and expenditure of administers economic activities. ....
Objectives or goals are the end results towards which activities are aimed. ....
Financial management is both a science and an art. Its nature is nearer to applied sciences as it envisages use of classified and tested knowledge as ....