Capital budgeting has received increased attention in recent years. The quantitative techniques employed for capital budgeting decisions depend largely upon accounting data. mlop856 Required:

a Distinguish between capital budgeting and budgeting for operations.

b Three quantitative methods used in making capital budgeting decisions are (1) payback period,

(2) accounting rate of return, and (3) discounted cash flow. Discuss the merits of each of these methods.