Capital Budgeting Techniques and Ethics Essay

November 26, 2022

Capital Budgeting Techniques and Ethics Essay

Order Number	636738393092
Type of Project	ESSAY
Writer Level	PHD VERIFIED
Format	APA
Academic Sources	10
Page Count	3-12 PAGES

Instructions/Descriptions

Capital Budgeting Techniques and Ethics Essay

[Order Now]

Capital, Budgeting, Techniques, Ethics, Essay

Question 1

Internal rate of return is a metric used in capital accounting; it’s typically applied when carrying down a process of scrutiny, which helps in identifying potential investment, opportunities, and profitability of a business or corporate organization. It has a discounted ratio that makes the net current value of all the net cash flow from an actual scheme equal to zero.

The price of return in the market is a crucial consideration that pinpoints high profiles in the market in efforts to determine accurate, reliable, and present value of the cash flow. Alternatively, the gross current rate approach is a discounted flow method and budgeting techniques that foresee future evaluation, investment, and cash circulation.

The net present value analysis and eliminates time elements when comparing all forms of available and alternative investments. Ideally, the two approaches are used in evaluating capital expenditures. Taking the two methods into account of contrast, internal rates focused more on surpluses, and discounted rates whole net present is enshrined on average domestic rates of return. In my own opinion, the internal rate of return is a better approach. It has a high performance on the revenue value; for instance, fixed interest in bank rates assures investors of security when trading (Steven, 2018).

Question 2

Various reasons influence firms to indulge in public limelight and offer services. Nevertheless, the primary objective of a company is to maximize profit and the revenue collection of the shareholders or the entrepreneur. This objective is ethical and should be practiced with the line of duty. Ideally, rules and regulations enhance the values, integrity, and character of working personnel, which improves working relationships and increases the profit margin (Lohmann, 2019).

Question 3

Companies that have enhanced strict adherence to ethics have added advantages of realizing various benefits. Regulations and guidelines enable companies to secure a full scope of the market. It also increases the revenue share by providing a conducive working environment for all employees. It enhances planning and production techniques, which give them a competitive advantage and a lower cost of capital (Campbell, 2019).

References

Campbell, P. (2019, August 16). Discount rate formula: Calculating the discount rate [WACC & APV]. Retrieved from https://www.profitwell.com/blog/discount-rate-formula

Lohmann, J. (2019). IRR | Internal rate of return | Definition & example. Retrieved from https://investinganswers.com/dictionary/i/internal-rate-return-irr

Steven Bragg. (2018, May 9). The difference between NPV and IRR — Accounting Tools. Retrieved from https://www.accountingtools.com/articles/the-difference-between-npv-and-irr.html

Professional Plagiarism Free Paper in APA/MLA/Harvard/Turabian Format, Instant Delivery, High Quality Submissions, 100% Unique, Turnitin Report Attached

Capital Budgeting Techniques and Ethics Essay

RUBRIC

Excellent Quality

95-100%

Introduction

45-41 points

The context and relevance of the issue, as well as a clear description of the study aim, are presented. The history of searches is discussed.

Literature Support

91-84 points

The context and relevance of the issue, as well as a clear description of the study aim, are presented. The history of searches is discussed.

Methodology

58-53 points

With titles for each slide as well as bulleted sections to group relevant information as required, the content is well-organized. Excellent use of typeface, color, images, effects, and so on to improve readability and presenting content. The minimum length criterion of 10 slides/pages is reached.

Average Score

50-85%

40-38 points

More depth/information is required for the context and importance, otherwise the study detail will be unclear. There is no search history information supplied.

83-76 points

There is a review of important theoretical literature, however there is limited integration of research into problem-related ideas. The review is just partly focused and arranged. There is research that both supports and opposes. A summary of the material given is provided. The conclusion may or may not include a biblical integration.

52-49 points

The content is somewhat ordered, but there is no discernible organization. The use of typeface, color, graphics, effects, and so on may sometimes distract from the presenting substance. It is possible that the length criteria will not be reached.

Poor Quality

0-45%

37-1 points

The context and/or importance are lacking. There is no search history information supplied.

75-1 points

There has been an examination of relevant theoretical literature, but still no research concerning problem-related concepts has been synthesized. The review is just somewhat focused and organized. The provided overview of content does not include any supporting or opposing research. The conclusion has no scriptural references.

48-1 points

There is no logical or apparent organizational structure. There is no discernible logical sequence. The use of typeface, color, graphics, effects, and so on often detracts from the presenting substance. It is possible that the length criteria will not be reached.