Discuss the importance and difficulties of decisions related to capital expenditure in detail
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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.Jan 11, 2011
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Capital expenditure decisions represent the most important decision taken by a company. Their importance from three inter – related reasons. ... Thus, a wrong capital investment decision cannot be reversed without incurring a substantial loss. Substantial outlays: Capital expenditures usually involve substantial outlays.
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