Capital Budget Definition

Below please find a definition of “Capital Budget”

Financial Analysis Training & Glossary TermsCapital Budget: Capital budgeting as it is commonly known is an investment theory that is followed by companies to determine if they have the funds to make long term investments, e.g. new machinery, new plants, new products, replacement machinery and research development projects. A lot of planning goes into paying for such large investments, hence it might require a combination of saved and borrowed money.

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