Describe how you would use capital budgeting techniques to determine whether a business investment is a good idea.
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When it comes to investing business capital, a financial manager would want to know whether that investment is a good one. The capital budgeting techniques reviewed in the Connect content provide the financial manager with tools to make good investment decisions.
Consider this week’s instructor video and Connect reading assignments. Imagine that you are a financial manager for a medium-sized company, and discuss the following:
Describe how you would use capital budgeting techniques to determine whether a business investment is a good idea.
Give an example of a business investment venture and how you would use capital budgeting to ensure it is a good investment.
Discuss your peers’ responses that varied from your own, especially if they changed your mind about a particular capital budgeting technique.
Discuss a situation in which you would use capital budgeting techniques to determine if a deal was worthwhile.
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