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Week 7 Discussion Capital Budgeting 3

Week 7 Discussion Capital Budgeting 3 - Coca Cola it might...

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I agree Aviancia. Capital Budgeting is the process of planning our long term investments. The goal is to decide whether adding a new building or plant, buying new equipment, or adding research and development problems will be profitable for the organization. These are probable the most expensive purchases a company would make on any given year. The only exception I can possibly think of is adding a new product line. For example, a company as large as say Pepsi or
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Unformatted text preview: Coca Cola, it might be more expensive for them to accommodate that large of a customer populate with a new product line. I guess in some cases it would fall under a capital budgeting decision anyway because the company may need new equipment. I would think that the cost of raw materials for a new product could also be very costly. Source: http://www.netmba.com/finance/capital/budgeting/...
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