"Capital budgeting processes at caterpillar inc" Essays and Research Papers

Sort By:
Satisfactory Essays
Good Essays
Better Essays
Powerful Essays
Best Essays
Page 3 of 50 - About 500 Essays
  • Good Essays

    Capital Budgeting

    • 18959 Words
    • 76 Pages

    MODULE 9 CAPITAL BUDGETING THEORIES: Basic Concepts Decision Making Process 2. The first step in the decision-making process is to A. determine and evaluate possible courses of action. B. identify the problem and assign responsibility. C. make a decision. D. review results of the decision. Strategic planning 39. Strategic planning is the process of deciding on an organization’ A. minor programs and the approximate resources to be devoted to them B. major programs

    Premium Net present value

    • 18959 Words
    • 76 Pages
    Good Essays
  • Satisfactory Essays

    Capital Budgeting

    • 765 Words
    • 4 Pages

    Capital Budgeting QRB/501 July 25‚ 2013 On this paper the reader will be able to find the rationale in the analysis of a specific capital budgeting case study. Definitions along with explanations related to capital budgeting such as Internal Rate of Return (IRR) and Net Present Value (NPV) will be provided and debriefed. It is extremely relevant to mention that capital budgeting allows the companies to analyze one or more projects to decide eventually which project or piece of equipment

    Premium Net present value Internal rate of return Investment

    • 765 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Capital Budgeting

    • 2404 Words
    • 10 Pages

    Capital Budgeting Meaning – Capital budgeting (or investment appraisal) is the planning process used to determine whether an organization’s long term investments such as new machinery‚ replacement machinery‚ new plants‚ new products‚ and research development projects are worth the funding of cash through the firm’s capitalization structure (debt‚ equity or retained earnings). It is the process of allocating resources for major capital‚ or investment‚ expenditures. One of the primary goals of

    Premium Net present value Internal rate of return Cash flow

    • 2404 Words
    • 10 Pages
    Good Essays
  • Powerful Essays

    Capital Budgeting

    • 4918 Words
    • 20 Pages

    Subject: Financial Management Chapter no. 11: Capital Budgeting Chapter No. 11 – Capital Budgeting Contents ♦ Capital budgets as opposed to revenue budgets ♦ Different kinds of capital budgets – non-productive assets‚ improving operating efficiency and capital projects ♦ Choosing capital projects – Conventional and Discounted Cash Flow techniques ♦ Payback period‚ Discounted payback period‚ Net Present Value‚ Internal Rate of Return‚ Profitability Index methods ♦ Assumptions underlying different

    Premium Net present value

    • 4918 Words
    • 20 Pages
    Powerful Essays
  • Powerful Essays

    Capital Budgeting

    • 751 Words
    • 4 Pages

    The Basics of Capital Budgeting Integrated Case Study Allied Components Company You recently went to work for Allied Components Company‚ a supplier of auto repair parts used in the after-market with products from Daimler‚ Chrysler‚ Ford‚ and other automakers. Your boss‚ the chief financial officer (CFO)‚ has just handed you the estimated cash flows for two proposed projects. Project L involves adding a new item to the firm’s ignition system line; it would take some time to build up the

    Premium Net present value Internal rate of return

    • 751 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    Capital Budgeting

    • 2183 Words
    • 9 Pages

    Capital Budgeting Luz A comas Strayer University Professor: Michael Hamuicka Financial Management – FIN 534 05/02/2011 Abstract Capital budgeting is one of the most important areas of financial management. There are several techniques commonly used to evaluate capital budgeting projects namely the payback period‚ accounting rate of return‚ present value and internal rate of return and profitability index. Recent studies highlight that financial managers worldwide favor

    Premium Net present value Internal rate of return

    • 2183 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Notes on Caterpillar Inc

    • 7285 Words
    • 30 Pages

    had been hampered to some extent by the company’s goal of catching Caterpillar. Whereas this strategy had worked remarkably well in expanding the company while the global market was growing‚ now that worldwide demand for construction equipment was down‚ Komatsu did not have the flexibility to adapt. Katada believed that the creativity of Komatsu’s middle managers had been sacrificed while everyone was concentrating on Caterpillar‚ and that managers had grown afraid to question the direction of the

    Premium

    • 7285 Words
    • 30 Pages
    Powerful Essays
  • Powerful Essays

    Capital Budgeting

    • 5557 Words
    • 23 Pages

    CAPITAL BUDGETING MEANING OF CAPITAL BUDGETING Capital budgeting is the making of long term planning decision for investment fixed assets and their financing. Capital budgeting decision is concerned with current investment that will pay for itself and yield an acceptable rate of return over its life span. Hampton (1992) defines capital budgeting as the decision making process by which firms evaluate the purchase of major fixed assets‚ including buildings‚ equipment. It also covers decisions to

    Premium Net present value Internal rate of return

    • 5557 Words
    • 23 Pages
    Powerful Essays
  • Satisfactory Essays

    Capital Budgeting

    • 5872 Words
    • 24 Pages

    Capital Budgeting Read Chaptes 7‚8 & 9 Problems from Chapter 7 : 1 to 28 Chapter 8 : 1 to 23 Chapter 9 : 1 to 24 1. NET PRESENT VALUE A. The Basic Idea Net present value—the difference between the market value of an investment and its cost. While estimating cost is usually straightforward‚ finding the market value of assets can be tricky. The principle is to find the market price of comparables or substitutes. Perspectives: Using the text example (page 257)‚ the basic idea

    Premium Net present value Costs Variable cost

    • 5872 Words
    • 24 Pages
    Satisfactory Essays
  • Better Essays

    Capital Budgeting

    • 1147 Words
    • 5 Pages

    Capital Budgeting Part I PV= FV / (1+i)^y PV= present value‚ FV= future value‚ i= discount rate‚ and y= time. 1a) If the discount rate is 0%‚ what is the projects net present value? Year Cash Flow Discount Rate Discounted Cash Flow 0 -$400‚000 0% -$400‚000 1 $100‚000 0% $100‚000 2 $120‚000 0% $120‚000 3 $850‚000 0% $850‚000 Answer: The projects net present value is $670‚000 If the discount rate is 2%‚ what is the

    Premium Net present value Internal rate of return Rate of return

    • 1147 Words
    • 5 Pages
    Better Essays
Page 1 2 3 4 5 6 7 8 9 50