0
Capital budgeting entails decisions to commit present funds in long term investment in anticipation of future returns. The future is usually of long term nature spanning over five years. The amount of investment and the returns from the cannot be predicted with certainty due to certain variables like market for the product, technology, government policies, etc. The uncertainty associated with the investment and the returns is what makes decision makers to consider probabilty distributions in their estimates, hence, making capital budgeting to be considered under uncertainty and risk.
What else can I help you with?
3 types of financing decisions under financial management?
The three types of financial management decisions are capital budgeting, capital structure, and working capital.In Some case Dividend decision is also part of financial management part although dividend decision comes under capital structure
Distinguish between decision making under certainty and decision making uncertaintyMantion certain models for solving decision problem under uncertainty?
when you know all information about alternatives and the best chosen one is certainty when you donot know all information is uncertainty
What has the author Peter Haddawy written?
Peter Haddawy has written: 'Representing plans under uncertainty' -- subject(s): Uncertainty (Information theory), Decision making, Artificial intelligence
What has the author David E Bell written?
David E. Bell has written: 'Decision making under uncertainty'
What has the author George Wright written?
George Wright has written: 'Strategic decision making' -- subject(s): Decision making, Strategic planning 'Cultural and individual decision making under uncertainty' 'Cultural and individual differences in probabilistic set, discrimination of uncertainty and realism of probability assessments'
Solved aper of assignment of ms-9 MBA of ignou?
why is decision making under uncertainty necessarily subjective? explain gving examples.
What has the author George K Chacko written?
George K. Chacko has written: 'Today's information for tomorrow's products' 'Decision-Making under Uncertainty'
What has the author Bruce F Baird written?
Bruce F. Baird has written: 'Managerial decisions under uncertainty' -- subject(s): Decision making
What has the author Manh Hung Nguyen written?
Manh Hung Nguyen has written: 'Dynamic timing decisions under uncertainty' -- subject(s): Decision making, Mathematical models, Nonrenewable natural resources, Technological innovations, Uncertainty
What is the significance of the Pascalian wager in the context of decision-making under uncertainty?
The Pascalian wager is a philosophical idea that suggests it is rational to believe in God because the potential benefits of believing outweigh the potential costs of not believing. In decision-making under uncertainty, this concept highlights the importance of considering the potential outcomes and their probabilities when making choices, especially when dealing with unknown or unpredictable situations.
What are three different conditions under which production decision are made?
Production decisions are typically made under conditions of certainty, uncertainty, and risk. In conditions of certainty, managers have complete information about the outcomes of their decisions, enabling straightforward planning. Under uncertainty, they face unknown variables and potential outcomes, making it challenging to predict results. In risk conditions, managers have some information about probabilities of different outcomes, allowing for informed decision-making based on statistical analysis.
What falls under PPBE?
What falls under Planning, Programming, Budgeting, and Execution
