Are the capital budgeting (investment) criteria we discussed applicable to not-for-profit...

Question

Are the capital budgeting (investment) criteria we discussed applicable to not-for-profit corporations? How should such entities make capital budgeting decisions? Consider charitable organizations such as the Canadian Cancer Society and Princess Margaret Hospital in Toronto. Should such entities evaluate spending proposals using these techniques?

are-the-capital-budgeting-ypfmvwdk-hij1ey1h.docx

Pawan · Accepted Answer

Are the capital budgeting (investment) criteria we discussed applicable 
to not-for-profit corporations? How should such entities make capital 
budgeting decisions? Consider charitable organizations such as the 
Canadian Cancer Society and Princess Margaret Hospital in Toronto. 
Should such entities evaluate spending proposals using these 
techniques?
Answer: - 
Capital budgeting is the process of appraising and determining the long-
term financial profitability of any investment made on behalf of the 
organization. 
Investment Criteria of Capital Budgeting: 
 
1. Accounting or Average Rate of Return Method 
2. Pay Back Period 
3. Discounted Cash Flow Techniques 
4. Net Present Value Method 
5.

Are the capital budgeting (investment) criteria we discussed applicable to not-for-profit corporations? How should such entities make capital budgeting decisions? Consider charitable organizations...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment