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Source of long term funding of capital expenditures. (...) Read more? Sign up for free
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mahvish
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Definition of Capital Budgeting
Capital budgeting is the process of preparing a plan for the raising of capital funds and for their deployment. For an incorporated business, funds may be obtained from a wide variety of sources.
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Anonymous
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Definition of Capital Budgeting
Capital budgeting is the process in which a company determines and evaluates potential large expenses or investments. For example, these expenditures and investments could be projects such as building a new plant or investing in a long-term venture.
In an "investment appraisal", companies assess a prospective project's lifetime cash inflows and outflows to determine whether the potential returns generated meet a target benchmark.
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Anonymous
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Capital Budgeting Definition
Capital budgeting, typically in the form of investment appraisals, is the planning process used to determine whether an organization's long term investments such as new machinery, replacement of machinery, new plants, new products, and research development projects are worth the funding of cash through the firm's capitalization structure (debt, equity or retained earnings).
It is the process of allocating resources for major capital, or investment, expenditures. One of the primary goals of capital budgeting investments is normally to increase the value of the firm to the shareholders.
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Special Interest Group Leader
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