GENERAL KNOWLEDGE

Detailed explanation-1: -Richard and Greenlaw have referred to capital budgeting as acquiring inputs with long-run return. In the words of Lynch, “Capital budgeting consists in planning development of available capital for the purpose of maximizing the long term profitability of the concern.”

Detailed explanation-2: -3) “Capital Budgeting consists in planning for development of available capital for the purpose of maximizing the long-term profitability (return on investment) of the firm”-R. M. Lynch.

Detailed explanation-3: -Milton H. Spencer has said that-”Capital Budgeting involves the planning of expenditure for assets, the returns from which will be realised in future time periods.”

Detailed explanation-4: -(iv) R.M. Lynch has said, “Capital budgeting consists in planning for development of available capital for the purpose of maximising the long term profitability of the firm”. (v) Hampton John. J. has defined it as “firm’s formal process for the acquisition and investment of capital”.