Journal
Capital Budgeting
Critically reflect on the importance of capital budgeting. Why is this such a heated subject in many boardrooms? How does capital budgeting promote the financial health of an organization? How will you use the financial techniques you have learned this week to promote the financial health of your organization?
Write one to two pages.
Assignment
Management of Working Capital Case Study: “George’s Trains”.
View the following Video:
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It appears that George is running a profitable business. George is aware you are in an MBA Managerial Finance class and comes to you for advice on his working capital practices. More specifically George asks:
- How you would describe my working capital practices, including my methods of capital budgeting analysis techniques?
- What are potential pitfalls in my Capital Budgeting practices that I should be aware of?
- Develop a simple Statement of Cash Flows for George’s Trains using any information gleaned from the video. What areas of improvement do you recommend? Provide at least three references from the Ashford Library or other scholarly sources to support your recommendations.
In a three to five page paper respond to George’s request for advice and answer each question in detail. The Written Paper should be properly formatted in alignment with APA 6th edition formatting.