Essay Examples on Petroc

Literature review of this project includes the theories tools and Hypothesis

8 Literature review Literature review of this project includes the theories tools and hypothesis I used when carryout this project Even though I have learned so many theories during this course I carefully selected the suitable theories for my approach 1 9 Capital Budgeting Capital Budgeting theory is assessing the each step of the project plan and determine plus and cons By using capital budgeting we will able to determine the results of our investment project Based on the results we can decide whether to go ahead with the project or not However rate of return is depend on many factors within the company and also based on project deliverables Capital budgeting helps organizations to measure long term financial health of any investment project whether the ROI is acceptable or not at a given timeline Importance of making Capital Budgeting Capital budgeting uncovers comprehensive framework which enables organization to 1 Develop and formulate long term strategic goals Setting up strategic goals for company growth will be supported by capital budgeting as it gives proper direction to appraise conclude better investment decisions 2 Seek out new investment projects knowing how to evaluate investment projects gives a business the model to seek and evaluate new projects an important function for all businesses as they seek to compete and profit in their industry 3 Estimate and forecast future cash flows Capital budgeting enables executives to take a potential project and estimate its future cash flows which then help to determine whether the project will be feasible and accepted By doing this company will ensure continuous healthy cash flow which will create the business value 

2 pages | 530 words