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{"id":277421,"date":"2022-12-12T18:47:50","date_gmt":"2022-12-12T18:47:50","guid":{"rendered":"https:\/\/qualityassignments.net\/?p=277421"},"modified":"2022-12-12T18:47:50","modified_gmt":"2022-12-12T18:47:50","slug":"week-5-capital-budgeting-the-famous-economist-john-maynard-keynes-commented-in-the-long-run-we-are-all-dead-in-other-words-it-is-neither-prudent-nor-recommended-to-plan-too-mu","status":"publish","type":"post","link":"https:\/\/qualityassignments.net\/2022\/12\/12\/week-5-capital-budgeting-the-famous-economist-john-maynard-keynes-commented-in-the-long-run-we-are-all-dead-in-other-words-it-is-neither-prudent-nor-recommended-to-plan-too-mu\/","title":{"rendered":"Week 5: Capital Budgeting The famous economist, John Maynard Keynes, commented, \u201cIn the long run, we are all dead.\u201d In other words, it is neither prudent nor recommended to plan too much long-term, because it is beyond human control to a large extent. How"},"content":{"rendered":"
\n<\/p>\n

<\/p>\n

Week 5: Capital Budgeting<\/h1>\n

The famous economist, John Maynard Keynes, commented, \u201cIn the long run, we are all dead.\u201d In other words, it is neither prudent nor recommended to plan too much long-term, because it is beyond human control to a large extent. However, from the corporate finance point of view, you still often have to consider reasonably long-term implications of investment decisions. As a manager or an executive, you want to make sure that your organization not only makes a profit, but also is profitable in a sustainable manner.<\/p>\n

Consider the scenarios below:<\/p>\n

    \n
  1. Your company is not performing well during the operating year and you anticipate lowered profit and maybe even incurring losses at the end of the financial year. However, the top management wants to show higher profits. Therefore, the financial management team decides to sell some fixed assets in order to increase the revenue and thus increase the profit margin. Your management has met the goal of high profit for the current financial year. However, selling the fixed assets to achieve profit may prove detrimental in the coming years.<\/li>\n
  2. Your company is planning to go through a major growth as well as a restructuring phase and needs a lot of money for that. As the chief financial officer (CFO), you have been asked to lead a team that will decide how to raise the money from the market. You have various options to raise the money. How do you decide which option to pursue?<\/li>\n<\/ol>\n

    This week, you start exploring capital budgeting. You examine various capital budgeting methods. You also conduct financial analysis of an organization and make recommendation that involves capital budgeting.<\/p>\n

    Learning Objectives<\/h2>\n

    Students will:<\/h6>\n