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  • B.e.2 Ros

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    reetta rison
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    Capital expenditure budgeting involves making long-term decisions about investing in capital resources like machinery, equipment, and buildings needed for manufacturing goods and services. Key factors in capital budgeting are the projected cash flows of projects, expected rates of return, investment criteria, and risk. Proper allocation of capital resources is important for productive and efficient use of assets, economic growth, and increasing labor productivity of companies.

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    Business economics- capital expenditure

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    B.E.2 ROS

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    Capital expenditure budgeting involves making long-term decisions about investing in capital resources like machinery, equipment, and buildings needed for manufacturing goods and services. Key factors in capital budgeting are the projected cash flows of projects, expected rates of return, investment criteria, and risk. Proper allocation of capital resources is important for productive and efficient use of assets, economic growth, and increasing labor productivity of companies.

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    2 views8 pages

    B.e.2 Ros

    Uploaded by

    reetta rison
    Capital expenditure budgeting involves making long-term decisions about investing in capital resources like machinery, equipment, and buildings needed for manufacturing goods and services. Key factors in capital budgeting are the projected cash flows of projects, expected rates of return, investment criteria, and risk. Proper allocation of capital resources is important for productive and efficient use of assets, economic growth, and increasing labor productivity of companies.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 8

    DECISIONS-

    CAPITAL
    EXPENDITURE
    BUDGETING ,DEMAND
    FOR CAPITAL
    RESOURCES
    BUSINESS ECONOMICS
    CAPITAL
    .
    The sum of financial assets that are
    required to produce goods or services.
    Capital
    resources/assets .
    man-made assets that encompasses
    machinery, equipment, buildings, etc.
    required in the manufacturing process of
    goods and services.
    Capital
    Budgeting .
    ● A process of making decision regarding
    long-term investment in fixed assets.
    ● Capital expenditure is the spending of
    funds for large expenditures.
    AFFECTING CAPITAL
    BUDGETING
    1.Cash flow of the project
    2.Rate of Return
    3.The Investment criteria involved
    4.Risk and Uncertainty
    ALLOCATION
    OF RESOURCES .
    ● using resources as productively and
    efficiently as possible.
    ● Within required time
    Demand for resource
    allocation .
    By Govt.,Public /private Enterprises,Firms...
    ● it contributes to economic growth.
    ● valuable goods needed for economic
    activities to start and function.
    ● to increase labor productivity by making
    companies more productive and profitable.
    ● given resource can have many alternative uses.
    Thank
    you

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