6.4 Capital Budgeting

A Capital Budget is a programme of capital expenditure covering several years and it also includes authorised future projects and projects current under consideration

short courses
Figure 6.1 Capital Budgeting Process
short courses

Capital Budgeting

Capital budgeting is a method of estimating the financial viability of a capital investment over the life of the investment. Unlike some other types of investment analysis, capital budgeting focuses on cash flows rather than profits.