Explain opportunity costs affect the capital budgeting, Financial Management

Assignment Help:

How do opportunity costs affect the capital budgeting decision-making process?

Opportunity costs imitate the foregone benefits of the alternative not chosen while a capital budgeting project is selected.  Any type of decrease in the cash flows of the firm directly tied to the choice of a new project could be part of the opportunity cost value and involved in our capital budgeting analysis.


Related Discussions:- Explain opportunity costs affect the capital budgeting

Discuss about the materiality, Discuss about the Materiality An item ca...

Discuss about the Materiality An item can be considered material if its omission would reasonably influence the decisions of an addressee of report, a misstatement is material

What is an annuity, What is an annuity? An annuity is a series of equiva...

What is an annuity? An annuity is a series of equivalent cash flows, spaced consistently over time.

ABF, HOW TO CALCULATE ASSESSED BANK FINANCE

HOW TO CALCULATE ASSESSED BANK FINANCE

Find the profit earned by firm in equilibrium, Suppose that Harry and Steve...

Suppose that Harry and Steven make their living selling contraband at opposite ends of a town that is 1 mile long. Because it's a crowded city, the citizens use taxi-cabs for trans

Example on cash flow diagram, (a) A usual cash flow diagram will incorporat...

(a) A usual cash flow diagram will incorporate the following. If you are short the CDO and then you receive a fixed amount at the initial point t o . After that you make paymen

Finance manangement, What is the maximum price that you would be willing to...

What is the maximum price that you would be willing to pay for a constant growth stock that has the following characteristics: (a) Dividend (Has Paid): $3.25, (b) Growth: 7%, and (

Liquidity risk, what role do core deposits play in predicting the probabili...

what role do core deposits play in predicting the probability distribution of net deposit drains

Parties to mutual fund trust, Parties to Mutual Fund Trust As is common...

Parties to Mutual Fund Trust As is common to any trust covered under the Indian Trust Act, the parties involved in a mutual fund trust are the sponsor or settler, the trustees,

Over the counter (otc), OTC refers to financial securities whose sale and p...

OTC refers to financial securities whose sale and purchase are not conducted over a stock exchange.

Operating cycle, applicability of operating cycle in poultry

applicability of operating cycle in poultry

Write Your Message!

Captcha
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