Capital-budgeting foundations

Unit 8: Basics of Capital BudgetingTopic 1 of 4

Browse the Fundamentals of Financial Management syllabus

Fundamentals of Financial Management

10 units

1 Introduction to Financial Management
- Financial-management foundations
- Financial goals and stakeholders
2 Financial Statement Analysis
3 Time Value of Money
4 Fundamentals of Risk and Return
5 Financial Assets Valuation
6 Cost of Capital
7 Capital Structure and Leverage
8 Basics of Capital Budgeting
9 Working Capital Management
10 Distributions to Shareholders

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What the syllabus expects

Decision characteristics
Decision process
Types of projects

Capital-budgeting foundations

Bachelor of Business Studies (BBS) — Second Year

Subject: Fundamentals of Financial Management (MGT 215)

Unit 8: Basics of Capital Budgeting

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

Explain the scope and key elements of capital-budgeting foundations.
Apply the relevant financial model, calculation or analytical approach and explain its assumptions and decision implications.

Curriculum Scope

Decision characteristics
Decision process
Types of projects

Detailed Microsyllabus

Capital-budgeting decisions
1. Long-term commitments and expected cash flows.
2. Independent, mutually exclusive and other project types.
3. Identify relevant incremental flows.
Decision process
1. Generate and evaluate proposals.
2. Select, implement and monitor investments.
3. State risk, timing and discount assumptions.

Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 41-43.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here.