chapter1: Introduction

Card Set Information

Author:
anisha
ID:
265524
Filename:
chapter1: Introduction
Updated:
2014-03-08 05:47:59
Tags:
project investment
Folders:
CID
Description:
for exams
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user anisha on FreezingBlue Flashcards. What would you like to do?


  1. Phases of capital budgeting?
    • 1. Planning
    • 2. Analysis
    • 3. Selection
    • 4. Financing
    • 5. Implementing
    • 6. Review
  2. Importance of capital investment decisions?
    • 1. Long term effect
    • 2. Irreversibilty
    • 3. Substantial outlay
    • 4. Risk
    • 5. Growth
    • 6. National Economy
    • 7. Complex
  3. Difficulties in capital investment decisions?
    • 1. Measurement problems
    • 2.Uncertainty
    • 3.Temporal Spread
  4. Aspects of project analysis?
    • Market Analysis (Potential Market, Market share, trend of business)
    • Technical Analysis (technical viability, Sensible choices)
    • Financial anaysis (Risk, Return)
    • Economic Analysis (Benefits and cost of shadow price)
    • Environmental Analysis (environmental damage, restoration measures)
  5. Types of capital investments?
    • Physical Assets,Monetary Assets, Intangible Assets
    • Strategic, tactical
    • Mandatory, expansion, replacement, diversification, R&D, Miscellaneous
  6. Process of feasibility study?
    • 1. Generation of idea
    • 2.Initial Screening
    • 3. Is the idea prima face promising?
    •       3.1 yes: Plan feasibilty analysis
    •               3.1.1 Conduct market analysis
    •                   Conduct technical analysis
    •             conduct eco. n envn analysis
    •           Is project worthwhile?
    •             . yes: prepare funding proposal
    •              . no: termnate
    • 3.2 no: terminate

What would you like to do?

Home > Flashcards > Print Preview