capital budgeting
The formal planning for significant expenditures, such as property, plant and equipment.
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capital budgeting decision
decision as to which real assets the firm should acquire.
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capital budgeting
process of making long-term planning decisions for capital investments. There are typically two types of investment decisions: (1) Selecting new facilities or expanding existing facilities.
CAPITAL BUDGETING - The decision-making process with respect to investment in fixed-assets. It involves...
CAPITAL BUILDER ACCOUNT (CBA) - A Merrill Lynch brokerage account that allows investors to access the l...
Capital Budgeting
Introduces the concept of capital budgeting and the alternative criteria that financial managers may use in the investment decision process.
capital budgeting criteria that compare the present value of cash inflows of a project discounted at the risk-adjusted cost of capital to the present value of investment outlays. ...
Capital budgeting
Capital investment decisions
The investment decision
The financing decision ...
Capital budgeting:
The evaluation and selection of a company's planned capital expenditures.
Français: Budget en capital
Español: Presupuesto de capital, presupuesto de gastos de capital, presupuesto de inversiones ...
Capital Budgeting. A formal plan for making investments in plant, equipment, other fixed assets, advertising projects, etc. Items included in the capital budget have lives in excess of one year and often require long-range planning.
Capital Budgeting: The Dominance of Net Present Value
Best Practice
efficiency of capital. IRR and internal rate of return may be used interchangeably.
By Harold Bierman, Jr ...
Capital budgeting
The process of choosing the firm's long-term capital assets.
Four Capital Budgeting Methods
The capital budgeting methods covered in Chapter 27 are:
Annual Rate of Return (also called the Accounting Rate of Return) Method
Cash Payback Method
Net Present Value Method (NPV) ...
Capital Budgeting
Cost of Capital
Council of Economic Advisers
Individual Development Account - IDA
Internal Rate of Return - IRR ...
Capital budgeting is the set of procedures and economic evaluation techniques used to analyze long-term capital investments.
Capital cost (CC) ...
Capital Budgeting
The process in which a business determines whether projects such as building a new plant or investing in a long-term venture are worth pursuing.
Capital budgeting decisions are not much different than the whole of managerial accounting. There are many tools one should understand. But, in the final analysis, good decision making will be driven by reasoned judgment.
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During capital budgeting, companies compare the rates of return of different projects to select which projects to pursue in order to generate maximum return or wealth for the company's stockholders.
Term used in capital budgeting to refer to the minimum required expected rate of return necessary to proceed with an investment.
Hypothecation
The pledging of collateral for loans.
capital budgeting Planning the most effective investment strategy in long-term projects in order... capital commitment Inventories of stocks carried by market makers.Because the value of stocks is...
Pool In capital budgeting, the concept that investment projects are financed out of a pool of bonds, preferred stock, and common stock, and a weighted-average cost of capital must be used to calculate investment returns.
Dependent Acceptance of a capital budgeting project contingent on the acceptance of another project.
Capital budgeting: the process of planning or appraising possible fixed asset acquisitions.
Capital employed: a term describing the total net assets employed in a business.
Post-audit A set of procedures for evaluating a capital budgeting decision after the fact. Postponement option The option of postponing a project without eliminating the possibility of undertaking it.
For capital budgeting finance, mean return has a similar formula. Mean return in capital budgeting is calculated by the maximum risk-tolerance weighted return instead of the probability.
In capital budgeting the payback period refers to the specific time period needed by the firm in order to recoup the initial plus and subsequent costs of the capital investment.
Definition: [crh] In capital budgeting, the concept that investment projects are financed out of a Definition: l"pool of bonds, preferred stock, and common stock, ...
Profitability Index (PI) A DISCOUNTED cash flow method used in capital budgeting to evaluate the financial viability of investment proposals.
A valuation method used in capital budgeting projects such as a small business purchase, which compares the Present Value of future benefits the investors receive from the project against the Present Value of the investments needed.
What It Means ...
Net present value: A capital budgeting performance measure that discounts all future cash inflows and outflows associated with the capital project to the present, ...
The required return in capital budgeting. For example, if a project has an expected rate of return higher than the hurdle rate, the project may be accepted.
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Dependent definition :
Acceptance of a capital budgeting project contingent on the acceptance of another project.
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Hurdle rate
The required return in capital budgeting. For example, if a project has an expected rate of return higher than the hurdle rate, the project may be accepted.
NPV is used in capital budgeting to analyze the profitability of an investment or project.
NPV analysis is sensitive to the reliability of future cash inflows that an investment or project will yield.
Formula: ...
Real Option Analysis: The application of option theory to capital budgeting decisions.
Receiver: A person or entity appointed under the legal security documents to administer the security on behalf of the project financiers.
Cost of Capital. The discount rate that should be used in the capital budgeting process.
of an investor whose stocks or bonds have dropped in value below their original purchase price. Hunkering down A term used to describe a trader selling off a big position in a stock. Hurdle rate The required return in capital budgeting.
 See also: Capital budget, Expense, Net present value, Cost of capital, Internal rate of return
  
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