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Capital Budgeting meaning

SANKET HOLAM (19 Points)

17 October 2021  
please explain me capital budgeting & important

 2 Replies

Giridhar S Karandikar (Team Lead) (7377 Points)
Replied 17 October 2021

It means to invest in machinery at the most leveraged way so as to increase the efficiency of the goods produced to earn maximum return on capital invested.
there are number of alternatives available for purchasing the machinery and the most profitable machine shud be selected which can give maximum return on capital invested it's payback period is minimum

Sourav (Student) (23897 Points)
Replied 17 October 2021

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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