How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Rahul Jain Your Own Question
Rahul Jain
Rahul Jain, Financial Advisor
Category: Finance
Satisfied Customers: 511
Experience:  BCOM(H), MBA, ACS
810777
Type Your Finance Question Here...
Rahul Jain is online now
A new question is answered every 9 seconds

what types of projects require more detailed analysis in the

Resolved Question:

what types of projects require more detailed analysis in the capital budgeting process?
Submitted: 7 years ago.
Category: Finance
Expert:  Rahul Jain replied 7 years ago.

The investment decisions of a firm are generally known as the capital budgeting, or capital expenditure decisions. The firm’s investment decisions would generally include expansion, acquisition, modernization and replacement of the long-term assets. Sale of a division or business (divestment) is also as an investment decision.

The capital budgeting has following characteristics:

The exchange of current funds for future benefits.

The funds are invested in long-term assets.

The future benefits will occur to the firm over a series of years.


Hence the projects which are of long term nature and above characterstics require detailed analysis in the capital budgeting processes.



Reference:

1. Management accounting by Khan & Jain

2. Financial Management by I.M. Pandey




Rahul Jain, Financial Advisor
Category: Finance
Satisfied Customers: 511
Experience: BCOM(H), MBA, ACS
Rahul Jain and other Finance Specialists are ready to help you