Capital budgeting involves longterm planning from "summary" of Loose Leaf Finance with Connect Access Card by Troy Adair,Marcia Millon Cornett,John Nofsinger
Capital budgeting is a crucial aspect of financial decision-making for businesses. It involves the evaluation of potential long-term investments to determine which projects will yield the highest returns. This process requires careful analysis and consideration of various factors to ensure that resources are allocated efficiently and effectively. One of the key characteristics of capital budgeting is its focus on long-term planning. Unlike short-term budgeting, which typically covers a one-year period, capital budgeting looks ahead several years. This long-term perspective is essential because many investment projects have extended payback periods and may take years to generate returns. By taking a long-term view, businesses can make more informed decisions about which projects to pursue and how to allocate finan...
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