How to prepare capital budgeting?

The
capital invested in
the business plan to
the budget request.
The decision to invest
in a business, usually
two types -
A)
short-term
investment decisions,
b) long-term
investment decisions.
Finance
long-term
projects for the
purpose of obtaining
money to invest in the
future
The plan is adopted. So
the
decision to invest
in long-term capital
plan
Budgeting
is called.
Capital investment to
achieve the maximum
profit and
Most
resources are
considered to be
subject to the
organization's growth.
The Project
Money
should be
invested in these
projects are the most
profitable. The
profitable
The
advantages are
achieved through the
reduction of future
return or expense.
Capital
Budgeting
is a long-
term plan, so the risk
here.
Capital
bajetinyera
Features
A)
long-term
investment projects
are planned.
The
duration of the
project until all the
organizations /
individuals are
expected to profit.
B)
for the purpose of
future profit
organizations /
individuals cash
Invest.
Than investing
in the future will
benefit from such
Expected
profit is
found.
C)
more than the
amount of capital
investment budget.
The amount of
investment is
determined by the size
of the project.
D)
the amount of risk
than long-term
investment. Long as
the risk of future
increases.
Bajetinyera
capital
requirements
As we
know, the long,
thick massive
investments of capital
budgeting
To
help you decide.
Capital in the following
bajetinyera
Requirements
can be
observed.
Restore:
Every
equipment has a
specific ayusakala.
When
the specified
time expires, a new
instrument instead
The.
Currently being
used in agriculture and
modern equipment.
Such
Profitable
for
businesses to
determine whether
any of the equipment
The.
The ruins of the
old appliances are
worth considering.
Modernization:
the
new equipment before
the end of the life
span of equipment
May
be required.
Instead of the old
model, the new
equipment
Model equipment in the
business
/
organization will be
beneficial for you to
change it
The.
The
mechanization of
agriculture instead of
the manual approach
to introduce
mechanized methods.
The need for more
capital.
Extension:
Any person
or firm contributes to
the widening of its
current business
Could.
In order to
increase the
production of the new
model requires the
machine to be
Could.
The new
machine will cost and
how much income a
person or firm
The
decision will take
into consideration.
What happens to the
breadth of businesses
purchasing new
machines
Will not see it.
Capital
budgeting
process
Capital
budget priority
to the following issues
need to be allocated to
the project capital.
Project
yourself,:
agriculture could be
proposed as follows:
A)
the production of a
new product offering
B)
the proposal to
increase the
production of existing
products
C)
To increase
production, the
purchase of a new
machine offers.
Project
Evaluation:
Project evaluation of
different methods.
Usually the
Future
projects
receiving rate to a
particular investor
The
receiving rate is
greater than the
capital cost or
investment in the
project
And
the rest is taken
for elimination. Each
other in the projects
Is not competitive.
Project
selection
should examine the
merits of the project
before the final
selection is not
possible, so that
future losses.
Project
implementation:
the
project is ultimately
the investment will be
After
selecting the
project in capital and
capital is needed
bajetinyera
Are allocated.
With the
end of the project's
estimated cost of the
project
implementation
Compared
to the
actual expenditures
required.
Methods
to evaluate
investment projects
Investment
projects
for the investment
decision-making, the
Evaluation
is very
important. The
purpose of this project
is to evaluate the
To
select the most
profitable and
attractive investment
projects in order to
Through
investment
by individuals or
institutions to achieve
its main goal
Could.
Project
evaluation methods
are described below.
1.
The method of
payment: cash return
on investment within
the time available
Be
paid to him during
the procedure.
Considering the
investment at the
time of payment
The.
However, the
profitability of the
project can not be
determined. Just how
much time invested
It
is known that the
money will be
refunded.