Kinds of Capital Budgeting
Kinds of Capital Budgeting
*Dr.P.Shanmukha Rao **Dr.N.V.S.Suryanarayana
Every capital budgeting decision is a specific decision in the given situation, for a given firm and with given parameters and therefore, an almost infinite number of types or forms of capital budgeting decisions may occur. Even if the same decision being considered by the same firm at two different points of time, the decision considerations may change as a result of change in any of the variables. However, the different types of capital budgeting decisions undertaken from time to time by different firms can be classified on a number of dimensions. Some projects affect other projects the firm is considering and analyzing. At the other extreme, some proposals are pre-requisite for other projects. The projects may also be classified as revenue generating projects or cost reducing projects. In general, the projects can be categorized as follows:
Tags: capacity utilization, capital budget, capital budgeting decision, capital budgeting decisions, challenges, economic life, existence, infinite number, ing, initial stages, modernization, parameters, point of view, proposals, rao, shanmukha, variables
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