Unit 3 Long Run Investment Decision–Capital Budgeting Focus Points only
English Section 1. What is Capital Budgeting? (മൂലധന ബജറ്റിംഗ് എന്താണ്?) Capital budgeting is making decisions about long-term investments. It means deciding which big projects a company should spend money on. These are projects that need a lot of money and give returns for many years. Example 1: A company wants to buy a new machine that costs ₹10 lakhs. The machine will make products for 10 years. Deciding to buy this machine is a capital budgeting decision. Example 2: A school wants to build a new computer lab that costs ₹5 lakhs. The lab will be used for 8 years. Deciding to build this lab is a capital budgeting decision. 2. Why Capital Budgeting is Important (മൂലധന ബജറ്റിംഗ് എന്തുകൊണ്ട് പ്രധാനമാണ്?) Capital budgeting decisions are very important because they involve big money and affect the company for many years. Importance of Capital Budgeting: Cost: Needs huge investment - big money decisions Time: Results come only after many years, not immediately...