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Capital Budgeting

1. Introduction to Capital Budgeting Every business entity has to continuously incur expenses on certain resources or assets which help it not only to produce but also grow. This expenditure has to be made on raw materials, labour, fuel and power, spares and stores as well as certain essential maintenance expenses. These expenses are the […]

Cost of Capital

1. Introduction to Cost of Capital The various sources from which the long term requirement of the capital can be met. Each of these sources involves some cost. The cost of capital can be defined as ‘”the rate of which an organization must pay to the suppliers of capital for the use of their funds”. […]

Economics Notes on Capital Budgeting

Economics Notes on Capital Budgeting:- 1. Concept of Capital Budgeting 2. Need for Capital Budgeting 3. Pre-Requisites 4. Process 5. Issues Involved. Concept of Capital Budgeting: Capital budgeting or capital expenditure management is concerned with planning and control of capital expenditure. Budgeting of capital expenditure is an important factor in the management of a business. […]

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