Name – Pradnya

Kshirsagar
Roll no – 2021-23-71
Subject Code – 202
Subject – Financial
Management
Capital Budgeting

Capital budgeting makes decisions about the long-

term investment of a company's capital into
operations. Planning the eventual returns on
investments in machinery, real estate and new
technology are all examples of capital budgeting.
Importance of Capital Budgeting
Long Term Effects
Decision taken through capital budgeting are
irreversable,they can be reversed if at all possible.
Risk and Uncertainity
A long term project has higher degree of risk and
uncertanity.
Large Funds
Large amount of funds are needed ny any business
organization for taking up any capital investment.

 Corporate Image
There would be an increase in the demand of the
company’s shares and goodwill in the market.
Factors Influencing Capital
Budgeting
Availability
of Funds

Future
Integral Earnings
Factors

Risk
Urgency
Invovled
 Nature of Capital
Budgeting
• Long Term Effect
• High Degree of Risk
• Huge Funds
• Ireversible Decisions
• Impact on Cost Structure
Techniques
Thank You