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Capital Budgeting Project

Suppose you are a manager considering a capital budgeting project. You have examined the proposed project and, according to every relevant piece of information you can find, you feel that the project should be undertaken. After submitting your analysis, the division head informs you that the project has not been approved for funding.

Briefly discuss the possible causes of the difference between the your opinion of the project and that of upper management. Use examples.

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There is various ways a management evaluate the project. Selection of project is based on that projects ability to generate positive cash flows, its market, the adoptability of the new product/services produced in this project etc. If the management finds that developing market for this project or the adoptability of the product or ...

Solution Summary

The solution examines a capital budgeting project. The possible causes of the differences between the experts opinion of the project and upper management opinion of the project is discussed.