Explain how a capital budget and a return on investment

Assignment Help Corporate Finance
Reference no: EM132314657

You are the chief financial officer (CFO) for an organization and need to discuss with fellow C-suite executives that cost cutting is not the only answer to profitability.

Prepare for the next manager's meeting by responding to the following prompts:

Explain how a capital budget and a return on investment contribute to sustainable growth.

Clarify the role that risk analysis plays during capital investment decision making.

Provide 1 reference that discusses cost containment and patient care.

Verified Expert

The paper is in relation to the analysis of the other factors and business decisions that helps in the contribution of increasing profitability of the company rather than mere cost cutting. Capital budgeting analysis along with effective return on investment helps the company in moving towards sustainable growth. The risks associated with the capital budgeting always exists which cannot be eliminated but steps for reducing the same can be adopted.

Reference no: EM132314657

Questions Cloud

Explain these multiple results to management : Sometimes ROR can give multiple results. How would you explain these multiple results to management?
Calculate the elasticity of demand for good x : The demand for good X is given by the following equation: QX = 325 - PX - 1.5 PW + 1.25 PG + 0.8 PY - 0.1 M
Calculate the point elasticity of demand for hondas : Calculate the point elasticity of demand for Hondas with respect to its own price, the price of Chevrolets, and the price of gasoline.
What affect will this likely have on economic mobility : Suppose a new law increases access to education for the lowest income earners in the economy. What affect will this likely have on economic mobility?
Explain how a capital budget and a return on investment : Explain how a capital budget and a return on investment contribute to sustainable growth. Clarify the role that risk analysis plays during capital investment
Public offerings differ from one another : How do private placements and public offerings differ from one another?
Develop a Python program to solve a problem : Develop a Python program to solve a problem. Follow good program development and coding style practices. Develop a Graphical User Interface
Multiple products currently offered by grips : Grips is a respected manufacturer of bicycle tires and accessories. After more than 18 years of making tires, tubes, and brake pads, the company
Describes the increase in the us money supply : Your book describes increase in the U.S. money supply as being analogous to giving people more money. If output of goods-services is not growing at similar rate

Reviews

Write a Review

Corporate Finance Questions & Answers

  How many yen will be worth

If the yen/dollar exchange rate is 125, how many yen will $15,000 be worth? - If the dollar depreciates to 100 yen/dollar, how many yen will $15,000 be worth?

  Choose the correct answers and complete the statementsa

choose the correct answers and complete the statements.a while evaluating capital investment proposals the time value

  Financial mechanisms influencing capital structure changes

In 1991, were U.S. firms more or less indebted than their British counterparts? -  What are the most important financial mechanisms influencing capital structure changes over 5-year horizons?

  What is the market value of kurzs existing assets

What is the market value of Kurzs existing assets and What is the new price per share immediately following this announcement, but before the shares are issued or the debt is retired?

  General battery company gbc is formulating plans to open

general battery company gbc is formulating plans to open battery exchange centers throughout the u.s. where

  Amodigliani inc is a company that operates in a world with

amodigliani inc. is a company that operates in a world with perfect capital markets including no taxation. its annual

  Why is cain concerned by the exchange rate fluctuation

Why is Cain concerned by the exchange rate fluctuation? Is her position long or short? Should Cain hedge her position in US$? Why or why not?

  Find the payback period

Quebec, Corporation, is buying machinery at a cost of 3,768,966$. The firm expects, as a result, cash flows of 979,225$, 1,158,886$, & 1,881,497$ over the next three (3) years.

  What is the present value of acmes future cash flows

What is the present value of Acme's future cash flows using the discounted cash flow model? Explain your reasoning using references from the background reading.

  Evaluation using roi in a real world organization

I am trying to find online data, journal articles or textbook references regarding a business approach to evaluation using ROI in a real-world organization.

  Prepare a statement of cash flows for the company

Prepare a statement of cash flows for the company for 2012 together with a reconciliation of operating profit and cash from operations.

  Difference between open-end and closed-end mutual funds

what is the difference between open-end and closed-end mutual funds and discuss the different investment vehicles avaibles to consumers.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd