Budgeting can be a drawn-out process, yet oftentimes once the year starts and results diverge, they become forgotten. Instead of budgeting just with qualitative methods, managers should combine them with quantitative tools. Comparing regressed historic trends with future expectations can be more accurate and ultimately ensure the budget survives the year.
For a business manager, choosing what to invest in should not be an exercise of instinct. With capital budgeting methods, managers can appraise various projects simultaneously, with the end result indicating which one will have the highest impact on company value.
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