Capital budget for business & Finance assignment help| Business & Finance homework help
My manager or my board will want to consider the benefits and risks of a capital investment proposal. The proposal could have three arguments in its favor: it would increase financial stability and diversification; create or expand jobs already existing, and encourage innovation. The proposal could also be criticized for its potential to reduce profits because of higher overheads associated with investments. It may even increase debt levels, if borrowing was required. The final decision on which side is the winner depends upon how these risks are managed, and whether they can be weighed against potential benefits from this investment.