Capital budgeting analysis is the analysis of all cash inflows and outflows related with the underlying asset purchase decision to evaluate the cost and benefit of purchase of asset.
cash outflows only
by considering npv analysis , irr and pay back period
it is increasing the incremental cash flow
cost of capital,financial leverage,capital budgeting appraisal methods,ABC analysis,ratio analysis and cash flow statements.
Incremental Cash flows are included in capital budgeting decision and if capital budgeting decisions require acquisition of money from open market then its financial cost is also relevant for decision making and it is also included in it.
what are the objective of capital budgeting
objectives of capital budgeting
Meaning of Capital Budgeting
1) What is capital budgeting? What are its objectives?
The purpose of capital budgeting is to help poor people and others improve their life.
Affect of net income is hard to determine due to any specific assets that's why capital budgeting decision making involves cash flows to determine cost and benefit analysis.
What impact does WACC have on capital budgeting and structure?