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Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher
Edition 3ISBN: 0073527114Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher
Edition 3ISBN: 0073527114What are the two most important factors an accountant must estimate in the capital investment decision?
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Step 1 of 2
Capital budgeting
Capital budgeting is the process used by the company to evaluate the capital investment that are available. The company uses various capital budgeting methods to evaluate whether the company should invest in the particular project that is whether the project is profitable for the company.
Step 2 of 2
Capital investment decision involve decision on whether company should invest or not in the capital opportunity available. In this case the accountant will therefore have to estimate the cash outflow for capital investment and cash inflow that is the amount of benefit or savings company would have from investing in the asset.
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