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Question: Write a script to describe capital budgeting considerations that you think are important for managers to consider? Answer: Capital budgeting: To start with the idea, capital budgeting is defined as the process or method of planning for any new project on assets with cash flows within a period that is greater than one year. The importance of capital budgeting includes the long-term investment of the capital of the fund tied into the project losing some of the flexibility during the specific period. Before making any investment, the manager of the firm needs to forecast the revenue over the future period of time. As something, say, a dollar today may yield higher return in future. Thus the long lengthen projects involve capital budgeting decisions to define the strategic plan of the economy. The two concepts must be considered of which one is numeric and another one is non-numeric i.e. quantitative. The numeric part is the division of capital budgeting when we are provided with the information to estimate the funds for capital spending needs. Taking care of the long term financial statements to invest into the organization should be cumulated as well. The net present value also named as NPV is something that we consider as a numeric factor. This can be used by taking the initial investment deducting from the value at present of future cash flows. The non-numeric part of the financial budget accounting is the planning part. The information is gathered by questioning people and by taking sample survey with observations by evaluating the budget request and the best options are provided. Both the numeric and non-numeric perspectives of capital budgeting are equally useful as well as important. References: Hickman, K. A., Byrd, J. W., and McPherson, M. (2013). Essentials of finance. San Diego, CA: Bridgepoint Education Inc.