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What is capital expenditure

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Reference no: EM132528934

Budgeting in uncertainty is challenging. The decisions made by budget managers affect the direction and future of every company. Having a thorough understanding of the components of capital budgeting is essential to developing an appropriate budget.

Choose a public company, and discuss the following:

In your opinion, what is 1 long-term goal of the company? Explain your answer.

What is a capital expenditure?

Describe a capital expenditure of the company. Why is this item a capital expenditure? Explain your answer.

How does this capital expenditure contribute to the long-term goals of the company as described earlier? Explain your answer.

What are the challenges for the budget manager for this particular capital expenditure? Explain your answer.

What is a potential solution for the budget manager? Explain your answer.

Reference no: EM132528934

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