Capital Budgeting: Techniques, Process and its Types
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Growth and expansion are the two main goals of any business. But this can be a challenge when a company has no fixed assets or insufficient financial resources. At this point, investment appraisal becomes necessary.
With the help of the capital budgeting process, the company plans to spend on fixed assets. A budget helps companies to decide on investment plans. It may suggest investing in long-term investments to achieve organizational objectives. This also affects the growth of the company. Companies can decide whether to sell or buy assets to expand.
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chegg
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