Why are capital budgeting decisions among the most important decisions made by any company? Give a few examples from recent business developments
What will be an ideal response?
Answer: The main objective of financial management is to maximize the value of the firm. The main source of value is the company's cash flows discounted at rates that reflect their risk. Both the firm's cash flows and their level of risk are determined by the projects the company chooses to undertake. Recent examples include Apples string of "I" products (pod, phones, pad), and Amazon's Kindle which have added tremendous value to those companies. Students may cite examples from the text such as Kimberly-Clark's Huggies or Walmart's use of central distribution centers. Examples of less than successful decisions, at least so far, might include the Segue or the Gap's ephemeral redesigned logo. (Students' answers will vary their experience and recent events.)
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A salesperson completed a listing agreement which the owner signed. When should the salesperson furnish the owners a copy of the listing agreement form?
A. After the listing broker has reviewed the form. B. After entering it into the multiple listing service. C. Upon securing the signature of the owners. D. When a written offer to purchase is presented to the owners.
Marketing critics claim that the inevitable outcome of successful marketing is unsustainable overconsumption
Indicate whether the statement is true or false