Question

Capital budgeting is long term planning for making and financing proposed capital outlays explain

Answer 1

Explanation:

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:

The term capital budgeting refers to long term planning for proposed capital outlays and their financing. ... It may thus be defined as “the firms formal process for the acquisition and investment of capital”. It is the decision-making process by which the firms evaluate the purchase of major fixed assets.