The process of determining which potential long-term projects are worth undertaking,...
The decision-making process with respect to investment in fixed-assets. It involves measuring the additional cash flows associated with investment proposals and evaluating the viability of those proposed investment. Finance By Example (Archives): AT&T Plans To Spend $9 Billion This Year Expanding Its Network Into New Markets On-Line Technology Is Changing Capital Budgeting & Investment Q & A: Market Reaction to Capital Budgeting Proposal
The decision-making process used in the acquisition of long-term physical assets.
The process of planning and managing a company`s l... more
Investment theory is used to examine a firm's capital purchasing decisions.
The process of analyzing the acquisition of new equipment, and deciding whether or not the revenue and/or cost savings generated by the asset are sufficient to justify its cost.
The process of choosing the firm's long-term capital assets.
The process of planning significant outlays on projects that have long-term implications such as the purchase of new equipment or the introduction of a new product.
A formal plan for making investments in plant, equipment, other fixed assets, advertising projects, etc. Items included in the capital budget have lives in excess of one year and often require long-range planning.
The process of determining how best to spend/allocate capital.
Process of analyzing and evaluating proposed long-term investments in assets such as plant and equipment in order to determine which assets to acquire or sell.
A purchase made to acquire the ownership of property, plant and/or equipment. Typically, these types of expenditures do not take place until after a lengthy capital budgeting review and approval process has occurred.
The process of analyzing alternative investments and deciding whether they will be included in a firm's investment budget (White, Becker, and Goldstein,1991).
The process of choosing the firms long-term capital assets.
Process of planning expenditures on assets whose returns are expected to extend beyond one year.
This is a process of planning and evaluating investment proposals of a company. This would entail determining investments whose return will extend for more than a year. The process also involves the detailing of amount needed to purchase capital items and the sources of funding.
The formal planning for significant expenditures, such as property, plant and equipment. To Top
Capital budgeting (or investment appraisals) are the planning processes used to determine a firm's long term investments such as new machinery, replacement machinery, new plants, new products, and research and development projects.