Dear Sir/Madam
I am Robin Paul, a MBA aspirant. As part of my Financial Management assignment I would like to know the Capital budgeting of ACC Cement Company. Please help me to get it.
I am living in Kerala, Kottayam.
Yours sincerly
Robin Paul
Dear Sir/Madam
I am Robin Paul, a MBA aspirant. As part of my Financial Management assignment I would like to know the Capital budgeting of ACC Cement Company. Please help me to get it.
I am living in Kerala, Kottayam.
Yours sincerly
Robin Paul
Posts: 6,843
Threads: 4
Joined: Mar 2015
Introduction
An efficient allocation of capital is the most important finance functionin modern times. It involves decisions to commit firm’s funds to long-termassets. Such decisions are tend to determine the value of company/firm byinfluencing its growth, profitability & risk.Investment decisions are generally known as capital budgeting orcapital expenditure decisions. It is clever decisions to invest current in longterm assets expecting long-term benefits firm’s investment decisions wouldgenerally include expansion, acquisition, modernization and replacement of long-term assets.Such decisions can be investment decisions, financing decisions oroperating decisions. Investment decisions deal with investment of organization’s resources in Long tern (fixed) Assets and / or Short term(Current) Assets. Decisions pertaining to investment in Short term Assets fallunder “Working Capital Management”. Decisions pertaining to investment inLong term Assets are classified as “Capital Budgeting” decisions.Capital budgeting decisions are related to allocation of investible funds todifferent long-term assets. They have long-term implications and affect thefuture growth and profitability of the firm.In evaluating such investment proposals, it is important to carefully considerthe expected benefits of investment against the expenses associated with it.Organizations are frequently faced with Capital Budgeting decisions. Anydecision that requires the use of resources is a capital budgeting decisions.Capital budgeting is more or less a continuous process in any growingconcern
