Capital Budgeting
/ˈkæpɪtl ˈbʌdʒɪtɪŋ/
Definitions
- (n.) The process by which a business or government evaluates and selects long-term investment projects based on their expected financial returns and risks.
The company utilized capital budgeting to decide whether to invest in new manufacturing equipment.
Forms
- capital budgeting
Related terms
See also
Commentary
Capital budgeting requires careful assessment of future cash flows and legal compliance in contract commitments and public expenditures.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.