Capital Budgeting Part 1- Revision notesCapital Budgeting Part 1- Revision notes.docVIP

CAPITAL BUDGETING Capital budgeting is the process of evaluating and selecting long-term investments that are consistent with the goal of shareholders (owners’) wealth maximization. The process of planning significant outlays on projects that have long-term implications is known as Capital Budgeting. Capital expenditure planning, evaluation, and control, sometimes called as the capital budgeting. It involves long-term commitments of resources to realize future benefits. It reflects basic company’s objectives and has a significant, long-term effect on the economic well being of th