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Fixed Assets Management

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Fixed Assets Management - Capital Budgeting Decisions

Fixed assets are like the properties, infrastructure facilities that are required by the business operations to complete successfully. A finance executive has to evaluate and decide on which fixed assets the company should invest so that company can perform all its current and proposed future functions. There are various techniques that are available and that can be used by the finance department to evaluate various proposals for the investments like - pay back period, Net Present Value, internal rate of interest, profitability index.

Once the economic value of those fixed assets gets over than a proper depreciation policy should also be formulated.

 

 

 

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