Horti-Business Management (2+0)

Capital budgeting

• Capital budgeting is a required managerial tool. One duty of a financial manager is to choose investments with satisfactory cash flows and rates of return. Therefore, a financial manager must be able to decide whether an investment is worth undertaking and be able to choose intelligently between two or more alternatives.
  
• To do this, a sound procedure to evaluate, compare, and select projects is needed.
  
• This procedure is called capital budgeting.