Card Set Information
Phases of capital budgeting?
Importance of capital investment decisions?
1. Long term effect
3. Substantial outlay
6. National Economy
Difficulties in capital investment decisions?
1. Measurement problems
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)
Types of capital investments?
Monetary Assets, Intangible Assets
Mandatory, expansion, replacement, diversification, R&D, Miscellaneous
Process of feasibility study?
1. Generation of idea
3. Is the idea prima face promising?
: Plan feasibilty analysis
3.1.1 Conduct market analysis
Conduct technical analysis
conduct eco. n envn analysis
Is project worthwhile?
: prepare funding proposal