Discuss the determinants of capital budgeting decisions of a company
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Capital budgeting is a company's formal process used for evaluating potential expenditures or investments that are significant in amount. It involves the decision to invest the current funds for addition, disposition, modification or replacement of fixed assets.
Management decisions: Need of the project
Structure of Capital: Capital Return
Lending terms of financial institutions: Economic value of the project
Accounting methods: Government policy
Management decisions: Need of the project
Structure of Capital: Capital Return
Lending terms of financial institutions: Economic value of the project
Accounting methods: Government policy
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