CAPITAL PROJECTS SPECIALISTS, EXPERTS WITNESSES and FORENSIC CONSULTANTS.
Capital planning, also known as "capital budgeting", is an accounting process whereby a financial analyst can determine the economic value of business projects/ventures and allocate capital to those endeavors which present the greatest calculated return on investment.
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Popular methods for determining the relative and absolute value of business projects/ventures include: Net Present Value (NPV), Internal Rate of Return (IRR), Discounted Cash Flow (DCF), and Payback Period Cost of capital (the optimal minimum cost mix of cost-of-debt and cost-of-equity to a business) otherwise known as the Business Rate of Return (the rate of return the market expects from businesses of similar risk) stands as a market determined interest rate applied to funds lent to businesses with similar risk levels. This rate fluctuates at any given point in time and constituent market sentiment. If a project or venture does not exceed this market determined required rate of return then it is not worth doing. The projects/ventures which do exceed this benchmark return may still not be worthwhile because their associated risk causes the business to exceed its total Financial Risk Budget.