Capital Budgeting Definition

Capital Budgeting
Knowledge Center

Forum

New Topic

Computer

Capital Budgeting Definition

Source of long term funding of capital expenditures.

  mahvish
 

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.

  Anonymous
 

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.

  Anonymous
 

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.

Start a new forum topic

 

More on Capital Budgeting
Summary
Forum
Capital Budgeting Definition
CB in International Joint Ventures
Lifecycle Costing on Capital Equipment
CB Issues
🔥CB Approaches for Acquisition / Divesture of Asset with Strategic Dependence
Special Interest Group

Do you have a keen interest in Capital Budgeting? Become our SIG Leader

Capital Budgeting
Knowledge Center



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2021 12manage - The Executive Fast Track. V15.8 - Last updated: 3-8-2021. All names of their owners.