Banking

Business Finance: Basic Guide To Capital Budgeting

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Executive Summary

There may be only a few projects that your company can undertake when they first start up. This is why budgeting your money in the most efficient way is so important. If you choose unprofitable or sub-optimal projects, it will be harder to get your company off the ground. However, a few good projects and your cash flows will be streaming. This will also attract investors who see how well you allot your scarce assets. Allocating your capital in the best way is one of the most important things a company can do. There are a few steps in the capital budgeting process that you need to go through when deciding which projects to undertake.

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