ECONOMICS

Detailed explanation-1: -Capital budgeting is the planning process used to determine whether an organisation’s long term investments such as new machinery, replacement of machinery, new plants, new products etc. are worth the funding of cash through the firms capitalisation structure.

Detailed explanation-2: -Capital Budgeting is the process of determining the firm’s long term investments if they are profitable or not. Capital Budgeting is a process of evaluating the proposed major projects or investments if these assets will be able to have the required rate of return for the company.

Detailed explanation-3: -The capital budgeting process is the process of planning used to evaluate the potential investments or expenditures whose amount is significant.

Detailed explanation-4: -Capital budgeting is used by companies to evaluate major projects and investments, such as new plants or equipment. The process involves analyzing a project’s cash inflows and outflows to determine whether the expected return meets a set benchmark.