What you’ll learn to do: Discuss capital budgeting
Capital budgeting is used to describe how managers may deal with huge buying decisions, such as new equipment, new product lines or a new manufacturing facility. Since there might be quite a few options, it is important to evaluate each to determine the most efficient and effective path for a company to choose.
How well a manager can make these kinds of decisions will have a big impact on the financial health, long term, of the organization. We will discuss each of the methods that can be used to evaluate these kinds of decisions.
- What is Capital Budgeting?. Authored by: Freedom Learning Group. Provided by: Lumen Learning. License: CC BY: Attribution
- Tesla Factory. Authored by: Steve Jurvetson. Located at: https://commons.wikimedia.org/wiki/File:Tesla_auto_bots.jpg. License: CC BY: Attribution