ECONOMICS

Detailed explanation-1: -Answer and Explanation: It is the capital expenditure budget which is prepared to list the dollar amounts which are going to be received by an organization from the process of disposing the plant assets and also lists the dollar amounts which are required to be spent on acquiring an additional plant asset.

Detailed explanation-2: -Capital Budgeting is the process of making financial decisions regarding investing in long-term assets for a business. It involves conducting a thorough evaluation of risks and returns before approving or rejecting a prospective investment decision. This process is also known as investment appraisal.

Detailed explanation-3: -The capital expenditures budget identifies the amount of cash a company will invest in projects and long‐term assets.

Detailed explanation-4: -A capital expenditure budget is a formal plan that states the amounts and timing of fixed asset purchases by an organization. This budget is part of the annual budget used by a firm, which is intended to organize activities for the upcoming year.

Detailed explanation-5: -Planning the eventual returns on investments in machinery, real estate and new technology are all examples of capital budgeting.