Capital budgeting is used by firms' management to make investment decisions by analyzing available options and determining the investment project that most fit firm's objectives and goals and those that provide the highest return. Management makes their final investment decisions based on five characteristics: project size, benefit to the firm,...

Introduction Budgeting is an important process that ensures that expenditure is planned for to ensure proper planning. Creating an expenditure plan in a company ensures that funds are utilized properly for developmental purposes. Budgets determine whether a financial period will experience successful development or not. However, the budgeting process can...

There are many similarities that may occur in budgeting between rival companies within the same industry. Samsung Electronics and LG are both large corporations within the electronics industry; by working to compare their spending habits it is not only possible, but quite easy to see where their spending habits lie,...

The escalation of societal, environmental, and economic evils has led various individuals to question the role of capital budgeting in the society. Subsequently, capital budgeting can help managers to address these social-economic challenges. However, the individuals must assess the ethical, social, and environmental effects of capital budgeting strategies before using...

Across the world, almost every person thinks of investing to realize profits. It is therefore vital for every investor to make sound decisions based on capital budgeting. For instance, Michael Evans decides to invest through a well-outlined investment plan. Considering the investment plan of Michael Evans, it would be a...