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Capital budgeting is the process to determine the value of a potential investment/project to a firm. That is, it weeds out good investments from the
Capital budgeting is the process to determine the value of a potential investment/project to a firm. That is, it weeds out good investments from the bad. Evaluating capital budget projects is a critical function for any business professional.
Using what you learned fromthe Capital Budgeting for Video Games you completed earlier in this unit and the resources provided in this discussion, prepare a post that addresses the following:
- What are the strengths and weaknesses of the capital budgeting tools (financial statistics)?
- Why do business professionals use all three tools?
- How did performing the calculationswork for you?
- What did you learn from completing the calculations?
- Is the information derived from thetools intuitive, or does it need further analysis?
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