Capital Budgeting

Capital Budgeting is the procedure in which a business determines whether projects like building a new plant or buying a long term enterprise are worth chasing. Capital budgeting is the planning process utilized to determine whether an organization’s extended investments such seeing that new or substitution machinery, new plants, new products, and research improvement projects are value the funding of cash from the firm’s capitalization metabolism.┬áThis article explain┬áCapital Budgeting formula and its operations.