Question

What is capital budgeting?

Answer 1

Answer:

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

Explanation:

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Answer 2

Capital Budgeting

Capital budgeting means planning for capital assets.

It is to be decided whether money should be invested in long term projects like setting up a new factory or ínstalling machinery etc...

There may be various proposals regarding capital expenditure.

We are required to choose the best out of various alternatives.

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