identify and explain importance of capital budgeting?
what the purpose of capital budgeting?

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identify and explain importance of capital budgeting?what the purpose of capital budgeting?

David · Accepted Answer

Capital budgeting 
The term capital budgeting refers to the decisions relating to proposed long term capital outlays. 
It is a formal process undertaken by the firm to efficiently invest funds in long term activities in 
anticipated of expected flow of future benefits over a number of years. The capital budgeting 
decisions have enormous impact on the basic character of the firm on a long term basis. The 
basic features of capital budgeting decisions are:

identify and explain importance of capital budgeting? what the purpose of capital budgeting?

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