Capital budgeting is essential for companies as it enables them to plan and invest in projects aligned with their long-term goals. For instance, a company like Tesla might use capital budgeting to decide whether to build a new manufacturing plant. This process helps ensure the new facility will enhance production efficiency and profitability while managing risks such as fluctuations in demand or raw material costs.
Capital budgeting has several limitations that businesses must consider. One key challenge is the reliance on estimates for future cash flows and discount rates, which can be inaccurate and lead to misguided investment decisions. Additionally, it often overlooks qualitative factors such as environmental impact, social responsibility, or employee well-being, focusing mainly on financial data. The complexity of capital budgeting techniques, especially for large-scale projects, can make the process time-consuming and difficult to navigate.
Moreover, capital budgeting struggles to account for non-financial benefits, such as improved employee morale or customer satisfaction, since these are hard to quantify in monetary terms. The process is designed for long-term projects, making it less suitable for short-term decision-making.
In summary, while capital budgeting is vital for strategic planning, companies must navigate these challenges to ensure success.
Bölümden 7:
Now Playing
Capital Budgeting
329 Görüntüleme Sayısı
Capital Budgeting
266 Görüntüleme Sayısı
Capital Budgeting
146 Görüntüleme Sayısı
Capital Budgeting
105 Görüntüleme Sayısı
Capital Budgeting
157 Görüntüleme Sayısı
Capital Budgeting
89 Görüntüleme Sayısı
Capital Budgeting
64 Görüntüleme Sayısı
Capital Budgeting
77 Görüntüleme Sayısı
Capital Budgeting
291 Görüntüleme Sayısı
Capital Budgeting
173 Görüntüleme Sayısı
Capital Budgeting
67 Görüntüleme Sayısı
Capital Budgeting
182 Görüntüleme Sayısı
Capital Budgeting
45 Görüntüleme Sayısı
Capital Budgeting
50 Görüntüleme Sayısı
Capital Budgeting
57 Görüntüleme Sayısı
See More
JoVE Hakkında
Telif Hakkı © 2020 MyJove Corporation. Tüm hakları saklıdır