Kitrel Muipon
Kitrel Muipon
wise to witness how the year would unfold, thus, the group held onto these stocks. Capital
budgeting is important for a company because a sizable volume of money is at stake, affecting
the company's profitability. Once a long-term investment is made, it cannot be undone without a
significant capital loss. The investment gets sunk, and faults frequently cannot be fixed until the
company's dissolution. For many years, it will affect the way business is conducted. On the other
hand, capital expenditures (CapEx) are costs that often yield long-term benefits to a company.
Due to the planned expansions and investments on expenditures set for the aforementioned
companies, the group believed that the prospect of the company’s growth and position in the
market would yield a higher return. As far as finance is concerned, the greater the capex budget,
the higher the expected value of a stock should be.