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Capital Budgeting
What does it mean?
The process of determining whether or not projects such as building a new plant or investing in a long-term venture are worthwhile.
In Other Words...
Popular methods of capital budgeting include net present value (NPV), internal rate of return (IRR), discounted cash flow (DCF), and payback period.
Also known as investment appraisal.
Related Links
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Related Terms
Budget | Cash Budget | Cash Flow | Cost of Capital | Discounted Cash Flow (DCF) | Internal Rate of Return (IRR) | Net Present Value (NPV) | Payback Period
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