Critically reflect on the importance of capital budgeting. Why is this such a heated subject in many boardrooms? How does capital budgeting promote the financial health of an organization? How will...

Running Head: CAPITAL BUDGETING        1
CAPITAL BUDGETING        2
    
CAPITAL BUDGETING
Table of Contents
Significance of Capital Budgeting    3
Its Significance in Boardrooms (in Management)    3
Financial Techniques to Promote Financial Health of Organization    3
References    4
Significance of Capital Budgeting
Capital budgeting ensures selection of the project, which has the highest return. It ensures growth and prosperity for any business in the long-term. As noted by Almazan, Chen and Titman (2017), capital budgeting involve staking decision for large capital investments. Such decision are irreversible therefore, capital budgeting helps in selection of the best option out of the available options. It ensures maximization of wealth...