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Managerial judgment
The Influence of Managerial Decision-Making in Capital Allocation
December 12, 2023
What is the role of managerial judgment in capital budgeting?
Managerial judgment in capital budgeting involves subjective assessments that complement quantitative analyses. It incorporates experience, intuition, and qualitative factors, balancing uncertainties and supplementing data-driven evaluations. Effective managerial judgment aids in selecting projects aligned with organizational goals, considering intangible factors impacting investment outcomes.
Tags : Managerial Judgment , Capital Budgeting , Decision-making