Question

What is a budget for major investment expenditures called?

Answer 1

Government acquisition intended to create future benefits, such as infrastructure investment or researchspending, is called gross fixed capital formation, 

Answer 2

Answer: Capital budget.

Explanation:

A budget for major investment expenditure is called a Capital budget.

The term budget is a very important term in running a business. It helps in executing the future plan of the company. In simple terms it lays a guideline on how to generate income and spend it in order keep the company grow and survive.

Capital Budget involves long term capital investment for executing an operation like investments in real estate, building a bridge,machinery and new technology.

There are several techniques for executing capital budgeting. The simplest of all is the payback period which is widely followed by the company. The term payback period determines the time required by the investment to return its value.

Hope this helps.