Capital Budgeting Analysis Services
The process of budgeting the capital investment of a firm can be understood as Capital planning and budgeting. You should have two questions in your mind before purchasing fixed assets.
- Whether the purchase of fixed assets is rational?
- If the above is yes, then which assets can be the best purchase for the organization?
To get the answer to these questions, you need to make a comparison and perform an individual cost-benefit analysis. In simple terms, any decision that has outflow in the current date and inflows in future dates needs capital budgeting analysis.
At CapActix, we assist businesses who don’t have resources to do a proper capital budgeting analysis since either management is equipped with routine activities or don’t have in-house capabilities to perform it.
At CapActix, we provide service in typical Capital Planning and Budgeting decisions such as
- Reducing operational cost by updating technology and older equipment
- Increasing capacity by maintaining the new plant, storeroom, or any other storing space for expansion
- Selecting the best one from available options to make the best use of money
- Making buying and leasing decisions for property and equipment for growth of the business
- Making the best decision on saving operation cost by updating technology
- Any other choice which includes capital investments and their analysis
Sometimes, you have a lot of projects in front of you and you need to make the best decisions keeping in mind the future growth of your business. CapActix can also help you in such conditions to find a single or multiple potential projects for funding which promises a significant future return.
Popular Capital Budgeting Analysis Techniques used by our CapActix team are as follows:
- Net Present Value (NPV),
- Internal Rate of Return (IRR),
- Modified Internal Rate of Return (MIRR),
- Profitability Index (PI),
- Payback Period (PBP),
- Discounted Payback Period (DPBP)