Introduction
Sports organizations can also use capital budgeting techniques to evaluate their capital projects. Sports firms must also invest in capital projects for expansion or to improve the efficiency of their operations. This paper explores two capital projects at motorsport firm using the various capital budgeting techniques.
Capital projects
The organization plans to purchase motorsport cars for hire. It has two alternatives X and Y. Car X will cost the organization $250,000 and is expected to have a useful life of 10 years. Its market value at the end of the tenth year is expected to be $25,000. It will ...