Capital Budgeting Research Paper Example | Topics and Well Written Essays - 1250 words

Capital Budgeting - Research Paper Example Capital budgeting is a resource allocation process that requires a balance between three factors, which include amount of resources that are to be expended, rate of utilization of those resources, and the time within which the investment starts showing some return in the form of profit. The basic aim of this report is to provide an in-depth understanding of important issues related to capital budgeting. The report also demonstrates the role of capital budgeting in the process of business development. Importance of Capital Budgeting Morgan (2006) states, â€Å"The success of a business depends on the capital budgeting decisions taken by the management†. Capital budgeting is basically a tool to evaluate, analyze, compare, and select the most appropriate project from a list of projects available for investment. Capital budgeting is one of the most important managerial tools, which helps the managers choose among different projects based on cash flows and rates of return. The mana gers choose those projects for investment, which are likely to generate considerable profits for their companies. In an interview with Mr. Darren Sammy, assistant manager finance department of Covrick Business Solutions, Sammy said that capital budgeting, if done properly, not only strengthens the financial position of the investing companies but also plays its role in strengthening the economy of a country as a whole (D. Sammy, personal communication, February 25, 2011). One can know the importance of capital budgeting by the fact that it increases a company’s credibility and profits by assisting the managers in the selection of most suitable investment opportunity for the company. Capital budgeting also helps the companies get considerable benefits from an investment over time, reduce the risks related to capital shortage, and increase the revenues. Three Important Factors There are some factors, which the companies need to consider while creating a capital budget for any s pecific project. Tatum (2011) asserts, â€Å"In order for the capital budgeting for a project to be attractive, the projections have to indicate several factors that will make up the outcome of the project†. Those factors include time needed to recoup the allocated resources, expected generation of revenues from the project, and amount of resources required to sustain the project’s momentum. It is a fact that a company, which recoups all allocated resources within a reasonable amount of time, enjoys more profits from the venture as compared to those companies which are not able to recover their investments in a short time. Capital budgeting for a project is successful if the project continues to generate profits for a long time. The graph of profitability generated from a selected project should continue to rise before leveling out, and this can only happen when the amount of resources required to sustain the project’s momentum are less than the amount of resour ces allocated to the project at the point of launch. Capital Budgeting Process Having discussed the importance of capital budgeting in the businesses and the considerable factors for budgeting, let us have a look at the capital budgeting process. The capital budgeting process helps managers select the most profitable projects from a pool of projects, time the projects’ expenditures, and include the selected projects into a

Service Learning Report Essay Example | Topics and Well Written Essays - 1000 words

Service Learning Report - Essay Example The Saudi Student Organization has been helping other Saudi Arabian students meet each other and help keep the culture alive on campus for the past ten years. We enjoy spending time together as students that represent the Saudi country and culture while spending our time getting an education at Murray in Kentucky and we also enjoy serving others. The sole purpose of our organization is to keep the culture alive on campus. While we are students learning in America, we must be true to our own cultures and upbringings. Not just in culture but in our faith. We mostly offer programs to help Saudi students connect with other Saudi students. The Saudi Student Organization also hosts National Day for Saudi Arabia. The organization that I am involved in invites all students and faculty to take part and learn more about our culture and religion. I have devoted more than 20 hours of my time into helping to guide new students and help them to fit in here at Murray because I remember how important it was to me when I came to campus to keep my culture close to my heart and while I was living in America, I did not want to forget who I was and where I came from. I feel like I owe to other students how others helped me. In regards to the Organization’s Forces for Good Diagnostic Tool, this was completed with high remarks. For Practice 1: Advocate and Serve, there were two questions. The first was, â€Å"My organization advocates for policy reform, in addition to providing direct services,† and Strongly Agree was chosen. For the second question, â€Å"My organization effectively combines service and advocacy, drawing on direct service programs to inform advocacy agendas and vice versa,† it was ranked as an Agree. For the second section, the topic was to Make Markets Work. The two questions were: â€Å"My organization changes the way local, national, or global businesses fundamentally