5 Explain the capital Budgeting process and its appraisals Solve the below given problem: Given below are the details on the cash flows of two projects A and B. Compute payback period for A and B. Cash flows of A and B Year Project A cash flows (Rs.) Project B cash flows (Rs.) 0 (4,00,000) (5,00,000) 1 2,00,000 1,00,000 2 1,75,000 2,00,000 3 25,000 3,00,000 4 2,00,000 4,00,000 5 1,50,000 2,00,000 Explanation of capital budgeting process and its appraisals. Solution for the problem
Answer:Capital budgeting process
After thescreening of proposals for potential involvement is over, the companyshould take up the following aspects of capital budgeting process:
- A
