Discuss how the capital budgeting concept is used to determine how a new project (hiring a...

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Finance

  1. Discuss how the capital budgeting concept is used to determinehow a new project (hiring a management employee or investing in anew product/service) is worthwhile. Explain in detailed withexamples and explanation for atleast 3-4 paragraph.

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Capital budgeting It is a technique to analyze a project so that approval or rejection decision can be taken regarding a particular project It evaluates potential projects with the help of Capital budgeting methods and chooses the best alternative that provides positive and higher cash flows in the futures Investment decisions can be taken lightly    See Answer
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