Capital Budgeting: Nature & Scope
The Present Chapter
It discusses the concept of capital budgeting, its process, techniques, and risk analysis of capital investment decisions by the business units.
Introduction
Capital budgeting decision relates to decision of investment in long-term projects. Capital budgeting is often used interchangeably with capital expenditure or capital investment. Any expenditure that generates a cash flow benefit for more than one year, it is a capital expenditure. For example, the purchase of new equipment, expansion of production capacity, buying another company, research & development, and so on. Capital budgeting involves large cash outlays for generating future return of the company. Once, a capital ...
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