Week 5 Journal: Capital Budgeting and Dividend Policy BUS 650 Managerial Finance Week 5 Journal: Capital Budgeting and Dividend Policy Capital Budgeting Decisions Capital budgeting is the process used by businesses to determine which potential major projects or investments to undertake. It is used to create a quantitative view of each proposed fixed asset investment, thereby giving a rational basis for making a judgement (Bragg, 2019). There are several methods commonly used to evaluate which projects should be pursued. The most important methods include net present value (NPV), internal rate of return, discounted cash flow, and payback period. When choosing projects, companies try to choose projects that add value to the company. Companies do not always choose the projects...