Capital budgeting, Finance Basics

Definition of 'Capital Budgeting':

The process in which a business calculates whether projects such as building a new plant or investing in a long-term risk are worth pursuing. Oftentimes, a prospective project's lifetime outflows and cash inflows are assessed in order to calculate whether the returns generated meet an enough target benchmark.  

Also defines as "investment appraisal."

Posted Date: 2/14/2013 12:15:55 AM | Location : United States

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