process of capital budgeting in mefa
Hello,
The process of capital budgeting in mefa is as follows:
1.Identifying investment opportunities
2. Evaluating investment proposals
3. Manufactured In-house
4. Choosing a profitable investment
5. Capital Budgeting Apportionment
6. Performance review.
Best wishes !!
Capital budgeting is made up of two words ‘capital’ and ‘budgeting.’ In this context, capital expenditure is the spending of funds for large expenditures like purchasing fixed assets and equipment, repairs to fixed assets or equipment, research and development, expansion and the like. Budgeting is setting targets for projects to ensure maximum profitability.
In this technique, the entity calculates the time period required to earn the initial investment of the project or investment. The project or investment with the shortest duration is opted for.
