1Chapter Five The Practice of Capital BudgetingMGMT 109Managerial FinanceProfessor Lu ZhengInvestment ProjectsInvestment projects (capital investments) are the principle activity and value creator for most corporations. The process of project decision making is known as capital budgeting.What is a project (the finance perspective)? A set of cash flows and the associated timing of these flows.Three Steps to Capital Budgeting1) Establishing the decision rule 2) Estimating cash flows (today)3) Determining the appropriate discount rate
has intentionally blurred sections.
Sign up to view the full version.