Budgeting Essays

The Quantity of Pennies

(1) Draw an indifference curve map with the quantity of pennies are on the horizontal axis and the quantity of nickels are on the vertical axis. Given the shape of your indifference curve, how would you describe the typical relationship between these two “products”? The two goods are perfect substitutes for each other. 5pennies are equivalent to a nickel. (2) You and I are in consumer equilibrium. CDs cost 10 dollars each and cassette tapes only 2 dollars each. I…

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‘george’s Trains’ Working Capital

George’s Train Shop is a family owned business that focuses on the sales and repairs of train toys. George is running a profitable business, but as he is aware of my MBA Managerial Finance class, he has asked for advice on his working capital practices. Although George is currently enjoying the benefits of a profitable business, there are opportunities for him to expand his business ventures. This first starts by dissecting degree of aggressiveness in working capital practices, current capital…

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Program Budgeting

In the general aspect of organizational management, the leaders and concerned authorities of each organization develop effective means of maximizing and properly allocating the important resources and elements existing in an organization for the benefit of the group. In this aspect, leaders aim to critically analyze and understand the processes involved in the organizational structure, the aims and pursuits of the group, the required costs and the available resources, and the issues in the organization’s pursuit of achieving their common…

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Importance of Budgets

Budgeting is critical to financial success. Studies of differences between successful and unsuccessful new businesses consistently find that businesses that carefully develop and follow budgets increase their chances of survival and success. The budgeting practices of successful businesses are (1) maintaining a complete and up-to-date set of financial records, (2) having financial records audited or checked by an experienced accountant, (3) keeping accurate records of business inventory and assets, and (4) using financial budgets as planning and management tools. A…

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case Write Up_ the Investment Detective

Case Summary The purpose of this case is to become a capital budgeting analyst and evaluate which set of free cash flows for 8 projects will result in the most effective investment for a firm’s capital. The objective given is to rank the four best that the company should accept. The case is broken down into three separate steps including the given information about estimated cash flows (inflows & outflows), determining the appropriate discount rate, and evaluating the cash flows…

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capital Budgeting Mini Case

There are many different methods business owners use to efficiently analyze business investment. One of these effective methods is the calculation of the net present value or NPV. The second most effective method would be the calculations of the internal rate of return or IRR. There are also other useful methods as well, for example, the payback rule and the profitability index. Many business owners use the above procedures to help them in their decision making of acquiring other businesses….

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Public Budgeting

Public budgeting touches every sector of the economy and it thus demands clear and accurate contribution of all the parties involved which include policymakers, financial institutions and the public at large. A national budget is a document which once approved by the legislature gives the government the mandate to collect revenue, incur debts on behalf of the public and come up with means of expenditure for the country to achieve certain goals (Cargill and Garcia, 2005). A budget outlines the…

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