CAPITALBUDGETING is a method of estimating the financial viability of a capital investment over the life of the investment. Unlike some other types of investment analysis, capital budgeting focuses on cash flows rather than profits.
It is the process a business undertakes to evaluate potential major projects or investments. Construction of a new plant or a big investment in an outside venture are examples of projects that would require capital budgeting before they are approved or rejected.
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CAPITAL BUDGETING is a method of estimating the financial viability of a capital investment over the life of the investment. Unlike some other types of investment analysis, capital budgeting focuses on cash flows rather than profits.
It is the process a business undertakes to evaluate potential major projects or investments. Construction of a new plant or a big investment in an outside venture are examples of projects that would require capital budgeting before they are approved or rejected.