Capital budget
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Capital budgeting
Capital budgeting (or investment appraisal) is the planning process used to determine a firm's long term
investments
such as new machinery, replacement machinery, new plants, new products, and research and development projects.Many formal methods are used in capital budgeting, including the techniques such as
Net present value
Profitability index
Internal rate of return
Modified Internal Rate of Return
, and
Equivalent annuity
.
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Campbell R. Harvey's Hypertextual Finance Dictionary
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Capital budget
A firm's set of planned
capital expenditures
.
Copyright © 2000,
Campbell R. Harvey
. All Rights Reserved.
Raynet Business | Marketing Dictionary
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Capital Budget
a plan to finance long-term outlays, such as for fixed assets like facilities and equipment.
Copyright © 2001,
Ray Wright
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