Capital Budgeting and Project Planning

Capital Budgeting and Project Planning:

In the introduction portion of capital budgeting, we can elucidate it as that decisions that are taken for buying long term and fixed assets. Working capital judgments and current assets investment decision do not come below capital budgeting. Whenever we take the decision whether specific fixed asset must be purchased or not, its planning will be capital budgeting. In capital budgeting, we fix our net investment in best project that will give us higher return. For capital budgeting, we use different methods for evaluating various projects. All methods are termed as capital budgeting methods.

Capital budgeting employs in all the area such as defense, construction business, and other big scale business because devoid of capital budgeting, our investment will not provide better return and we might get risk of loss of return.

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