Reference no: EM131544164

Assignment: Capital Budgeting

Capital budgeting is a tool used in business to determine the financial viability of a potential project. Net present value, internal rate of return, payback, discounted payback, and modified rate of return are some of the calculations used once businesses have a reliable cash flow budget for their project.

In this assignment, you will demonstrate your understanding of the necessary aspects of capital budgeting.

Tasks:

Respond to the following:

• What is capital budgeting and why is it important to business decisions?
• Discuss how the information should be organized in a capital budgeting process, and who will use the information for decision-making.
• What could go wrong with the capital budgeting process?
• Provide an example of a capital budgeting process from an online source and explain the salient points of this example to the class.

In a minimum of 300-500 words, post your responses using critical thinking and analysis.

Submission Details:

• Post your responses to this Discussion Area. Support your assumptions by citing the source material used for this discussion in APA format.

• Read and respond to at least two of your classmates' posts. While responding, share any real-world experiences in capital budgeting. Provide substantive comments by contributing new, relevant information or quotes from course readings, Web sites, or other sources; by building on the remarks or questions of others; or by sharing practical examples of key concepts from your experiences-professional or personal.

Do the following when responding to your peers:

• Read your peers' responses.

• Provide substantive comments to at least two peers on a minimum of two different days by

o contributing new, relevant information from course readings, Web sites, or other sources;
o building on the remarks or questions of others; or
o sharing practical examples of key concepts from your professional or personal experiences.

• Respond to feedback to your own posting and provide feedback to other students about their ideas.

• Make sure your writing

o is clear, concise, and organized;
o demonstrates ethical scholarship in accurate representation and attribution of sources; and
o displays accurate spelling, grammar, and punctuation.