Capital Budgeting Decision: A Guide for Academics
Capital budgeting is the process of making investment decisions in order to maximize a company’s value over time. It involves assessing the expected return of potential investments and then making an informed decision on whether or not to pursue them. A key part of this process is deciding the optimal currency for making investments. For many businesses, making a decision about what currency to use for investments can be an important factor in determining the success of the capital budgeting decision. In the forex market, investors can utilize tools such as currency correlations to help decide which currencies are most beneficial for achieving their investment objectives. Appropriately selecting the currencies to use in capital budgeting decisions can help businesses maximize value from their investments, while also reducing the risk of exchange rate variability.