Respond to the required questions, double-spaced, APA format (source citations and reference insertions) essay (Each Question). In each Case Study, you must use at least three (3) references (in text), including the textbook (included below).
Respond to the required questions, double-spaced, APA format (source citations and reference insertions) essay (Each Question). In each Case Study, you must use at least three (3) references (in text), including the textbook (included below). Textbook reference: Managerial Accounting: Decision Making and Motivating Performance- Text Only: Datar, S. M., & Rajan, M. V. (2014). Managerial accounting: making decisions and motivating performance. Boston: Pearson. ISBN: 9780137024872 (This Assignment Box maybe linked to Turnitin.) 125 Words (Samantha Argus-Bolyard) – Reply and Comment on the following: Capital budgeting is a way of looking at the viability of a project from the initial investments to the retirement of the project (Datar & Rajan, 2014). The information provided by capital budgeting gives management crucial data about the possible gains or losses from an investment.Cash flow is an important aspect of capital budgeting and in order to determine the possible cash flow the follow method could be used; Net present value (NPV), Internal Rate of Return (IRR), Discounted cash flow, and payback period (Verbeck, 2020). Capital budgeting can be used in a variety of ways such as cost-benefit analysis, classification, and risk (Cole-Ingait , n.d.). Cost benefit analysis looks at the amount generated throughout the life of the investment and the opportunity costs that might be missed by going with one investment vs another (Cole-Ingait , n.d.). Classification also uses capital budgeting to rank the possible investments, allowing management to focus on the best investments (Cole-Ingait , n.d.). Risk management is used in capital budgeting to assess the risk involved with each investment (Cole-Ingait , n.d.). The reason capital budgeting is so important is because it allows the management team to look at all aspects of investments or project before the company spends the time and money. Companies can use this technique for purchases of new equipment or expansions, investment opportunities, or accepting new large orders/creating new products. Integrity is important in budgeting because giving false information could lead to a business making a poor business decision and effecting the financial state. The management team depends on the information from capital budgeting and if that information is wrong or bias to a choice, then they are nor provided a clear picture into the choices. This manipulation can cause a company to invest their money in the wrong place and cause a significant financial loss. 125 Words (Shawna Lewis) – Reply and Comment on the following: What is capital budgeting? It is the decision-making process that companies follow regarding which rigorous projects they should pursue. These projects range from opening a new business, expanding a new business, to the research and development of new products. There are many things that are important in the capital budgeting process. Incremental cash flows being one that is an important factor, but not as important as integrity. The integrity of a corporation’s capital budgeting process is especially important because it demonstrates a couple things about the quality of management in the corporation. These include the degree to which management supports the goal of a shareholder wealth expansion and the effectiveness in following that goal. Creating profit is not the only goal when it comes to the integrity of capital budgeting. Sometimes a corporation must give back to its community. For example, with a charitable project, it is most likely not going to be approved based on the rate of return but more on the desire of encouraging goodwill and impacting back to the community.