CAPITAL BUDGETING IN APSFC
In anticipation of an expected flow of future benefits over a series of years.The long-term activities are those activities, which affect firm’s operationsbeyond the one year period. Generally, the firm’s capital budgeting decisionswill include addition, disposition, modification and replacement of long term, or fixed assets.
Greater emphasis on the capital budgeting decision
1)They have long term implication for the firm and influence its riskcomplexion.2)They involve commitment of large amounts of fund.3)They are irreversible decisions.4)They are among the most difficult decision to make. Andhra Pradesh State Financial Corporation (APSFC) is a term lendinginstitution established in 1956 for promoting small and medium scaleindustries in Andhra Pradesh under the provisions of the state financialcorporations act, 1951. The corporation came into existence on 1-11-1956by merger of Andhra Financial Corporation and Hyderabad State FinancialCorporation.