About Lesson
Capital budgeting is a process through which the companies evaluate the investment and expenses in the long-term capital projects, usually exceeding one year. Investment at the right amount, in the right quantity, and using the right finance option is a key to a successful business. For taking the decision regarding the best source of finance, and the best investment option, and making a long-term investment budget, the process of capital budgeting is used.
In this chapter, we would discuss the process of capital budgeting, the principles, techniques, and criteria for deciding the actual budget to be allocated.