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Marketing decisions can be very much hampered without incorporating the aspect of capital budgeting. Investment-oriented decisions should be anchored on the anticipated returns from such an investment. In essence, businessmen ought to establish the present value expected from a future investment. This calls for prospective businessmen to determine the duration of time that an investment will take before it matures. This information will enable the investor to decide whether or not to venture into the envisaged project or not.
Alternatively, lower-level managers such as marketers have to spend whether or not to boost sales force or utilize more funds on advertisement.
The Chapter 6 - Investment decisions - Capital Budgeting website explores a number of significant aspects related to capital budgeting. For example, the website examines the significance that capital budgeting has upon decision making. Further, the website dwells on the various kinds of investment projects. The website also explores the financial assessment of investment proposals.
The significance of the twin concepts of internal rate of return in business decision making processes (FAO).
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Proficient in: Finance
4.9 (984)
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To cap it all, the demerits and merits of the payback technique as a method of vetting competing projects is analyzed. Businesses should always carry out capital budgeting. This is because huge amounts of finances may be readily wasted if investment proves to be uneconomic or wrong (Peterson & Fabozzi, 2002). Basically, capital budgeting aspires to investigate the issue of the future worth of money that could be expended at the moment.
To achieve this task, the aspects of the internal rate of return, annuities, as well as the net present value are analyzed.
The website has a number of notable strong points as well as observable weaknesses. Regarding the strengths, the website is commendable for a number of reasons. For example, the website demonstrates an excellent organization of the points. To illustrate this concept, the website follows a logical organization of the various facts. This concept makes the website very user friendly as it allows for its readers to comprehend the content. Readers do not thus get confused with the website’s points.
Generally, the excellent organization of the website’s content, as is exhibited by the logical flow of information, makes it very reader friendly. This is very a laudable aspect. On the other hand, the website has a number of weak points. For example, owing to the broad reach of the topic of capital marketing, the website has failed to exhaustively explore various points. This concept has made readers to fail to accurately and deeply comprehend the website’s content (Dayananda, 2002). For example, most of the website’s topics are handled in a somewhat offhand manner, thus failing to comprehensively explore all pertinent aspects.
In conclusion, the Chapter 6 - Investment Decisions - Capital Budgeting website excellently explores the concept of capital budgeting and the associated decisions. The website also asserts that the concept of decision making in capital marketing is very essential to prospective businessmen. Related to this is the issue of the value that money that is invested at the money will have at a future date. The website also has a number of notable weak points as well as merits. Regarding the strong points, the website’ content is very well organized; the points are thus presented in a logical manner.
Readers thus find the contents very informative owing to the smooth flow of information. Concerning the weaknesses, the broad nature of the subject matter has prevented the website from comprehensively analyzing the pertinent facts. References Dayananda, D. (2002). Capital budgeting: Financial appraisal of investment projects. Cambridge, UK: Cambridge University Press. FAO. Chapter 6 - Investment decisions - Capital budgeting. Retrieved July 23, 2010, from http://www. fao. org/docrep/w4343e/w4343e07. htm Peterson, P. P. ; Fabozzi, F. J. (2002). Capital budgeting: Theory and practice. Hoboken, NJ: John Wiley and Sons.
Principles of Finance Internet Writing Assignment. (2020, Jun 02). Retrieved from https://studymoose.com/principles-of-finance-internet-writing-assignment-new-essay
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