Essay on Capital budgeting

They take it as it were an operating budget assessment instead of approaching it as a decision that will impact their daily operations in the long-term, for example, cash flow and taxable income (Baker, 2018). The manager should be proficient in identifying an opportunity when it comes and exploiting it to the best of his or her ability. This is for the reason that the company faces lots of challenges, especially in the competition sector, as there are many other companies offering the same services. The need to be distinctive when an opportunity comes by is vital. Risk evaluation or strategic planning is also a tool that the manager should have; this is because in such companies there is no as surety that a product will sell as expected.