Brief Introduction The framework for a judicious capital budgeting of a local government unit responds to the specific needs of people in a community. It also manifests the vital role of the Mayor, or the local chief executive, who executes sound policies and fosters strong partnerships with thee Council Members, members of the local legislative body. Thus, good governance emanates from the synergy of a […]

Real Options in Capital Budgeting The usual capital spending or budgeting techniques guide financial managers of companies in making accept or reject decisions about specific projects and assets. They do not guide these managers in areas related to the project after it has been initiated. The managers using only these techniques would not be able to change their decisions when the project has started. One […]

Capital Budgeting Decision Process 1. Introduction The maximization of shareholder wealth can be achieved through dividend policy and increasing share price of the mark value. In order to derive more profits, our company shall invest potential investments which always cover a number of years. Those investments involve substantial initial outlay at the outset and the process. The management is responsible to participate in the process […]