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Finance · Corporate Finance

Capital Budgeting

Noun
US US /ˈkæpɪtl ˈbʌdʒɪtɪŋ/ GB UK /ˈkæpɪtl ˈbʌdʒɪtɪŋ/
Finance Corporate Finance intermediate

Definition

The process of planning and evaluating long-term investment decisions.

Visual Reference

Capital Budgeting illustration

Detailed Explanation

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Example

CFOs rely on Capital Budgeting when structuring capital and planning corporate strategy.

In Practice

Also known as: Investment Planning, CapEx Planning. Closely related to NPV, IRR.

Video Explanation

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Case Study

Capital Budgeting - key concept in Corporate Finance.

Word Usage

Business decisions; Manufacturing; Infrastructure

Finance Corporate Finance

Use Case

Applied in Corporate Finance contexts: Business decisions; Manufacturing

Also Known As

corporate-finance

Synonyms

Investment PlanningCapEx Planning

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