Question

2. What is Capital Budget? Explain its importance​

Answer 1

Answer:

Capital budgeting is important because it creates accountability and measurability. Any business that seeks to invest its resources in a project without understanding the risks and returns involved would be held as irresponsible by its owners or shareholders.

Answer 2

Answer:

hope it helps you

Explanation:

Capital budgeting is a process that helps in planning the investment projects of an organization in long run. It takes all possible consideration into account so that the company can evaluate the profitability of the project.Importance of capital budgeting can be understood from its impact on the business.

Capital budgeting is important because it creates accountability and measurability. ... The capital budgeting process is a measurable way for businesses to determine the long-term economic and financial profitability of any investment project.