Market risk is theoretically the most relevant measure of risk for capital budgeting purposes because it is reflected in stock prices.
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.
WACC is appropriate where company is using differnt kind of capital like debt and equity for doing capital budgeting.
SORRY
no
1. poor alignment between strategy and capital budgeting 2.deficiencies in analytical techniques 3.no linkage between compensation and financial measure 4.reverse financial engineering 5.weak integration between capital budgeting and expense budgeting 6.inadequate post-audit. answers given by Shailesh sharma.
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?
When making capital budgeting decisions the following need to be considered:Accounting rate of returnPayback periodNet present valueProfitability indexInternal rate of returnModified internal rate of returnEquivalent annuityReal options valuation
The purpose of capital budgeting is to help poor people and others improve their life.
What impact does WACC have on capital budgeting and structure?
introducing a new product in foreign markets.
capital budgeting is one of important in company financeing position
Objectives of capital budgeting project report
You can learn about the capital budgeting process on the wikipedia free encyclopedia article which is labelled capital budgeting. It describes what the process is and what types of companies use it.