Formal process of investments or expenditure

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"Capital Budgeting is the formal process of investments or expenditure that is huge in amount. It involves the company's major decision where to invest the current fund in the development of the organization such as for addition, disposition, modification or replacement of fixed assets. Capital budgeting becomes important due to the huge amount of investment that is involved and the risk associated with the same".

1). You are required to critique the above statement by evaluating and providing importance of capital budgeting. Provide local examples in places where possible. Specifically, explain which capital budgeting method would you prefer while deciding on fixed long-term investments.

Reference no: EM132596255

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