The Capital Budgeting Process: Theory and Practice

1987 ◽  
Vol 17 (2) ◽  
pp. 78-90 ◽  
Author(s):  
Tarun K. Mukherjee ◽  
Glenn V. Henderson
2018 ◽  
Vol 1 (1) ◽  
pp. 20-53 ◽  
Author(s):  
Lingesiya Kengatharan

The main purpose of this research was to delineate unearth lacunae in the extant capital budgeting theory and practice during the last two decades and ipso facto become springboard for future scholarships. It has analyses of various approaches, such as Web of science search and iCat search were used to locate research papers published during the last twenty years. Four criteria have been applied in selection of research papers: be an empirical study, published in English language, appeared in peer reviewed journal and full text research papers. These papers were collected from multiple databases including OneFile (GALE), SciVerse ScienceDirect (Elsevier), Informa - Taylor & Francis (CrossRef), Wiley (CrossRef), Business (JSTOR), Arts & Sciences (JSTOR), Proquest ,MEDLINE (NLM), and Wiley Online Library. Search parameters covered capital budgeting, capital budgeting decision, capital budgeting theory, capital budgeting practices, capital budgeting methods, capital budgeting models, capital budgeting tools, capital budgeting techniques, capital budgeting process and investment decision. Thematic text analyses have been explored to analyses them. Keywords: Capital budgeting theory and practices, capital budgeting tools for incorporating risk, discount rate  


1993 ◽  
pp. 97-113
Author(s):  
Ru Michael Sabre ◽  
J. Edward Ketz

2009 ◽  
Vol 42 (3) ◽  
pp. 679-703 ◽  
Author(s):  
Genevieve Fuji Johnson

Abstract. Analyzing three timely Canadian cases, this article develops an important relationship between the theory and practice of deliberative democracy. The Canadian Nuclear Waste Management Organization (NWMO), Nova Scotia Power Incorporated (NSP), and Toronto Community Housing Corporation (TCHC) recently held consultative initiatives appearing to seek the democratic empowerment of citizens. In each case, we see institutional features of deliberative democracy. But only the TCHC's participatory budgeting process begins to fulfill the promise of deliberative empowerment, that is, inclusive, informed, and equal public deliberation focused on a common good at the policy formulation, implementation, and evaluation stages. Why is the case of the TCHC characterized by greater deliberative empowerment than the cases of NSP and the NWMO? I explore possible explanations, all of which focus on the political context in which deliberation takes place. My overarching finding is that the motivation of policy elites within these organizations is key in the deliberative empowerment of citizens at the institutional level. I conclude by identifying factors that might account for the presence or absence of this motivation.Résumé. En analysant trois cas canadiens opportuns, cet article développe une relation importante entre la théorie et la pratique de la démocratie délibérative. La Société de gestion des déchets nucléaires (SGDN) du Canada, Nova Scotia Power Incorporated (NSPI) et la Toronto Community Housing Corporation (TCHC) ont récemment mis en oeuvre des initiatives consultatives qui semblent vouloir donner le pouvoir démocratique délibératif aux citoyens. Dans chaque cas, on observe des caractéristiques institutionnelles représentant les valeurs d'une démocratie délibérative. Mais le processus budgétaire participatif de la TCHC est le seul qui commence à tenir les promesses d'une prise de pouvoir délibérative, caractérisée par une délibération inclusive, informée et égalitaire, axée sur un bien commun, aux étapes de la formulation, de la mise en oeuvre et de l'évaluation d'une politique. Pourquoi le cas de la TCHC atteste-t-il d'une plus grande prise de pouvoir délibérative que ceux de NSPI et de la SGDN? J'explore des explications possibles, qui sont toutes centrées sur le contexte politique dans lequel survient la délibération. En général, je constate que la motivation des élites politiques à l'intérieur de ces organisations est primordiale pour la prise de pouvoir délibérative des citoyens au niveau institutionnel. En conclusion, j'identifie les facteurs pouvant justifier la présence ou l'absence de cette motivation.


2013 ◽  
Vol 9 (4) ◽  
Author(s):  
M. Dolores Guerrero-Baena ◽  
José A. Gómez-Limón ◽  
J. Vicente Fruet Cardozo

2016 ◽  
Vol 9 (1) ◽  
pp. 31-38 ◽  
Author(s):  
James A. Turner

Many introductory finance texts present information on the capital budgeting process, including estimation of project cash flows.  Typically, estimation of project cash flows begins with a calculation of net income.  Getting from net income to cash flows requires accounting for non-cash items such as depreciation.  Also important is the effect of changes in net operating working capital on cash flow.  While students readily understand how to account for depreciation when calculating cash flow, they typically have much more difficulty understanding how and why changes in working capital affect cash flows.  This paper develops a teaching example to show exactly how and why changes in net operating working capital affect cash flows.  The example shows how to derive operating cash flows for a proposed project using the accrual accounting method and then shows a cash budget for the same project.  Finally, the example shows that the discrepancy between the cash flows shown in the cash budget and the operating cash flows can be resolved by accounting for changes in working capital.  A survey of students in an MBA managerial finance course indicates student satisfaction with the teaching example and gives evidence that students prefer the teaching example to explanations of the effect of working capital on project cash flows given in the assigned text.


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