A Study On Capital Budgeting

This article mainly improves the capital budgeting by designing the utility function of investment and researching the investments withdrawing of enterprise that is one part of the investment budgeting controlling system.It summarizes the world's situation of capital budgeting study about defining, invitation in advance, capital budget valuing method, controlling capital budget. The article gets the proper definition of capital budgeting in addition to pointing out some questions and disadvantages. As one of the significant targets to analyze and research are the capital budgeting theories and methods.The thesis at first divides the methods into the traditional and the modern according to the relation between budget and cash current, then engages in analyzing and valuing for the two types. Finally, on the basis of this, it introduces the capital budget valuing methods upon the investment effect with the combination of firm strategy. The other emphasis is the budget controlling. It from setting up complete capital budgeting controlling system, studying one complete capital budgeting system respect need .At the same time, the thesis consider investment withdrawing is important part of budget controlling. At last, it advises how controlling system is used in enterprise. The main work of the thesis is as follow:(1) Analyzing the world study situation from different aspect, giving the proper capital budgeting definition.(2)Defining the valuing methods which base on real option as the modern capital budget valuing ones; Comparing the modern one with the traditional and analyzing them.(3)0wing to the importance of the strategy in the budgeting, the article tries to suggest the investment effect valuing function based on the strategy and supply it to value, analyze the enterprise capital budgeting projects.(4)Improving the controlling system, taking the investment withdrawing as a part ofthe capital budget controlling, summarizing all sides of the controlling system.