Refer to the latest financial report of JB Hi Fi Limited on its website, www jbhifi com au, and answer the following questions A perusal of the report clearly indicates that JB Hi Fi Ltd does make capital budgeting decisions of some magnitude What evidence is there of these activities What method o...

1 There is evidence of capital budgeting decisions in the notes and in the cash flow statement cash ...

Refer to the latest financial report of JB Hi-Fi Limited on its website, www.jbhifi.com.au, and answer the

Question:

Refer to the latest financial report of JB Hi-Fi Limited on its website, www.jbhifi.com.au, and answer the following questions:

A perusal of the report clearly indicates that JB Hi-Fi Ltd does make capital budgeting decisions of some magnitude. What evidence is there of these activities?
What method of capital budgeting would you expect JB Hi-Fi Ltd to use? Explain your answer.
Does JB Hi-Fi Ltd fund capital projects through special borrowings or through equity? Explain your answer.
What does the investing activity section of the cash flow statement tell us about capital budgeting for the previous 12 months?

Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...

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