Defined capital budgeting.
What are the capital budgeting methods used by managers?
The process by which a company decides which investments in projects or purchases of fixed assets are acceptable and which are not is known as capital budgeting. This method involves quantitatively analysing each proposed investment, enabling the business owners to make informed decisions.
Financial decision-makers can select which projects to approve and pursue with greater confidence if they use capital budgeting. Capital budgeting is a tool that businesses may use to monitor a project's progress and make sure it is generating the desired value. Due to the size of their investments and the associated risks, firms need to consider capital budgeting.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
