Process of making capital expenditure decisions

Assignment Help Financial Accounting

Reference no: EM13790456

Question: Ron ELy says that the Balanced Scorecard was created to replace financial measures as the primary mechanism for performance evaluation. He says that it uses only nonfinancial measures.

1) Is this true?

2) Explain your answer.

Question: The process of making capital expenditure decisions is known as capital budgeting. The three most commonly used capital budgeting techniques are (a) annual rate of return, (b) cash payback, and (c) discounted cash flow.

Required:

1) Give a brief definition of each technique.

2) Which budgeting techniques do you think is the best method to use for capital expenditures? Explain your choice.

Reference no: EM13790456

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