Capital Budgeting

Capital Budgeting & Managerial Decisions

This video discusses Amazon’s acquisition of Whole Foods. It emphasizes that although the short-term financial implications of capital budgeting are important, the long-term strategic importance of Amazon entering the Grocery business will likely outweigh any short-term losses. It also highlights that some capital budgeting decisions have to viewed with a longer time horizon.

This clip shows the impact of technology in agriculture. It stresses the importance of capital budgeting decisions in all sizes and types of businesses, including family farms. The efficiencies gained from such technologies must be weighed against the risks of tying up significant amounts of capital.

McDonald’s is in the process of rolling out automated kiosks nationwide. This video discusses a number of different factors that played into this capital budgeting decision, including costs saved on wages for cashiers and the additional sales by reducing wait times.

The video discusses how cities across the U.S. competed for Amazon’s second headquarters. Many of these cities offered lucrative tax incentives to encourage Amazon to make the large capital investment in their city. Amazon’s process of evaluating alternative cities was largely a capital budgeting decision, considering both the pros and cons of each city.