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 this week provide the financial manager with tools to make good investment decisions.
Consider this week's instructor video. 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.