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Capital Budgeting and Risk Management

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What is the value of a Capital Budget in Mitigating Risk?

Which is less risky, a Merger or an Acquisition?

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Capital budgeting is a technique which helps an organization to evaluate the attractiveness of the projects and investments being undertaken or to be undertaken by the organization.

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What is the value of a Capital Budget in Mitigating Risk?
Capital budgeting is a technique which helps an organization to evaluate the attractiveness of the projects and investments being undertaken or to be undertaken by the organization. It helps the organization to allocate the capital to the best possible investment option or project or in other words, make the best possible long term decision by comparing various alternatives and choosing the one which results in the maximum benefit for the entity in the long run. Thus, this technique helps in mitigating the risks associated with investing in risky or unattractive projects in the sense that it helps the company to ...

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Sheetal Jain, PGDM
Education
  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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