Capital budgeting is a process used by companies for evaluating and ranking potential expenditures or investments that are significant in amount. Capital budget to handle as well as assess project acceptability as well as ranking. In this lecture briefly focus on How do firms make decisions about whether to invest in costly, long-lived assets and How does a firm make a choice between two acceptable investments when only one can be purchased. The actual benefit time period is actually the number of occasion needed for the firm to recuperate it is preliminary expense, since worked out through cash inflows.
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