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- DictionaryCap·i·tal budg·et
noun
- 1. a budget allocating money for the acquisition or maintenance of fixed assets such as land, buildings, and equipment: "the city had sufficient leeway in its capital budget to build the bridge itself"
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Jun 18, 2024 · Capital budgeting is a process that businesses use to evaluate potential major projects or investments. Building a new plant or taking a large stake in an outside venture...
- Will Kenton
- 2 min
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Capital Budgeting is defined as the process by which a business determines which fixed asset purchases or project investments are acceptable and which are not. Using this approach, each proposed investment is given a quantitative analysis, allowing rational judgment to be made by the business owners.
Capital budgeting in corporate finance, corporate planning and accounting is an area of capital management that concerns the planning process used to determine whether an organization's long term capital investments such as new machinery, replacement of machinery, new plants, new products, and research development projects are worth the funding ...
Jun 13, 2024 · Capital budgeting is the process by which investors determine the value of a potential investment project. The three most common approaches to project selection are...
Feb 6, 2023 · Capital budgeting is the process of analyzing, evaluating and prioritizing investment in large-scale projects that typically require significant amounts of funds, such as the purchase of a new facility, fixed assets or real estate.
- Kristina Russo
- Author
Jun 8, 2023 · Capital budgeting is the planning of expenditure whose return will mature after a year or so. Thus, it is a process of deciding whether or not to commit resources to a project whose benefit would be spread over the years.
Capital budgeting is the process of determining how to allocate (invest) the finite sources of capital (money) within an organization. There is usually a multitude of potential projects from which to choose, hence the need to budget appropriately.
