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Capital Budgeting 11

Capital Budgeting

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Title: Capital Budgeting

Essay Details:

Subject: History

Author: Jack G

Date: September 5, 2015

Level: University

Grade: B

Length: 15 / 4254

Essay text:

To do this, a sound procedure to evaluate, compare, and select projects is needed. This procedure is called capital budgeting. I. CAPITAL IS A LIMITED RESOURCE In the form of either debt or equity, capital is a very limited resource. There is a limit to the volume of credit that the banking system can create in the economy. Commercial banks and other lending institutions have limited deposits from which they can lend money to individuals, corporations, and governments. In addition, the Federal Reserve System requires each bank to maintain part of its deposits as reserves. Having limited resources to lend, lending institutions are selective in extending loans to their customers...

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