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Capital Budgetting - Research Paper Example
Author : emmerichelyse
Finance & Accounting
Pages 7 (1757 words)
Capital Budgeting (Name) (Course) (Tutor) (Date) Introduction Finance is a dynamic topic that is important in various economic applications. Foundation of finance is well established to provide a stable framework of financial concepts and decision making in the economy…
This topic has various fields such as capital budgeting which acts as an instrument in the monetary and fiscal policy. The two policies are necessary in improving net worth in the economy of a country in order to enhance development. This is mainly achieved through the reliance of debts rather than from other convectional sources such as tax. Capital budgeting is introduced in the economy so as to reduce deficit caused when expenditure exceeds revenue. In addition, capital budgeting is also primarily concerned with investment in the economy within long-term assets. These assets can either be tangible items such as equipment and property or intangible such as technology, trademarks and patents. However, the key challenge in capital budgeting is defining appropriate balances between current and capital expenditure. It is, therefore, important to enhance proper capital budgeting in order to reduce debts. This paper work analyzes a comprehensive research on capital budgeting in the economy. This is in an effort to identify some aspects of corporate practices, which are consistent with capital budgeting policies and decisions. Capital budgeting decisions Capital budgeting decisions is highly applicable in the economy to maximize market values of firms to their shareholders. ...