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Capital budgeting process

by | Apr 10, 2022 | Accounting | 0 comments

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Your company does not utilize any form of capital budgeting and having just finished your graduate program, you decide to write a memo to your CEO describing the capital budgeting process and how that process could improve the evaluation of capital projects in the future. Your boss likes detail so please be meticulous. Show an example of a capital budget where NPV and IRR are calculated. Explain why these calculations are important and how to use them to the companies benefit.

 

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