A sound capital budgeting technique is based on
Jun 12, 2019 The investment decision rules may be referred to as capital budgeting techniques, or investment criteria. A sound appraisal technique should be used to measure the economic worth of an investment project. The essential property of a sound technique is that it should maximize the shareholders wealth. The following other characteristics should also be possessed by a sound investment evaluation criterion.A sound Capital Budgeting technique is based on: Cash Flows; Accounting Profit; Interest Rate on Borrowings; Last Dividend Paid; Which of the following is not a relevant cost in Capital Budgeting? Sunk Cost; Opportunity Cost; Allocated Overheads; Both (a) and (c) above; Capital Budgeting Decisions are based on: Incremental Profit; Incremental a sound capital budgeting technique is based on
Jun 26, 2019 Capital Budgeting. Loading the player Capital budgeting is the process in which a business determines and evaluates potential expenses or investments that are large in nature. These expenditures and investments include projects such as building a new plant or investing in a longterm venture.