qrb 501 bus math wk6 qu-3

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Model for Capital Budgeting

The importance of capital budgeting


In the world of business, capital budgeting is one of the most important steps that a company can take. I did not fully grasp the importance until I discussed it in the class. Without capital budgeting, your company could make a fatal mistake. Ultimately, the objective of capital budgeting is to help you make decisions that are smart for your business. Taking the necessary steps to evaluate each opportunity can help you avoid disastrous consequences for your business. If these steps are not taken, you can take on a project that does not bring any value to your company. Ultimately, it could prove to be the last mistake your company remakes. Therefore, the capital budgeting process is crucial to consider before making any big decisions for any type of project.

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