What is capital budgeting? What steps are involved in the process of capital budgeting?

Evaluation of capital expenditure, which are basically decisions of selecting long term projects proposals for investment, is called budgeting. The process of capital budgeting is quite complex, involving the following:

1. Identifying the potential investment opportunities.

2. Assembling the proposed investments.

3. Making the decision,

4. Capital budget proportion

5. Implementation

6. Performance review.

Sanisha Maharjan
Jan 18, 2022
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