What is Budget? Explain the Capital Budgeting Techniques.
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Capital budgeting is the process a business undertakes to evaluate potential major projects or investments. Construction of a new plant or a big investment in an outside venture are examples of projects that would require capital budgeting before they are approved or rejected.
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Capital budgeting is a set of techniques used to decide when to invest in projects. For example, one would use capital budgeting techniques to analyze a proposed investment in a new warehouse, production line, or computer system.
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