1.0   INTRODUCTION

1.1   BACKGROUND OF THE STUDY

Capital budgeting can be explained in the context of a firm’s decision to invest its current funds in long term activities in anticipation of an expected flow of future benefits over a number of years. However, the investment decisions could be in the form of acquisition of additional fixed assets, replacements and modifications of activities or expansion of a plant. Therefore, the financial manager should give due consideration to the following factors when capital budgeting decisions are involved:

1. 1. This material content is developed to serve as a GUIDE for students to conduct academic research work
2. 2. As a source for additional understanding of the subject.
3. 3. As a source for ideas for your own research work (if properly referenced).
4. 4. For PROPER paraphrasing (see your university definition of plagiarism and acceptable paraphrase)
5. 5. Direct citing (if referenced properly)
Thank you so much for your respect to the authors copyright.