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please explain me capital budgeting & important
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Capital Budgeting meaning
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Quick Summary
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
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
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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