Assume that you have been assigned to explain the following to UPC’s capital planning committee: Challenges associated with the capital planning process Risks involved in capital planning Techniques...

Financial planning is the most important tool for the success of any business, an organization
without plan is like a ship without its captain. There are various tools that are being used in
financial planning which helps organization in achieving great success. Various tools used by the
management in the financial planning are financial ratios, cost of capital, capital budgeting
techniques etc.
Various Ratios are used by the managers and accountants for controlling the functioning of the
organization. These ratios are also known as accounting or financial ratios. These ratios play
very important role in the organization.
The capital budgeting is the process in which the business determines whether projects such as
building new plant or machinery or investing in a joint venture are worth pursuing. The decision
for capital budgeting is directly affected by the cost of capital, risk involved, cash outflows, cash
inflows etc. various risks are involved in capital budgeting such as...