Definition of capital budgeting, Financial Management

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Q. Definition of Capital Budgeting?

Capital Budgeting is the procedure of making decisions for investment in long-term assets. It is a method of deciding whether or not to invest the funds in a particular asset the benefit of which will be obtainable over a period of time longer than one year.

Definition of Capital Budgeting:-

As-per to the Milton H. Spencer 'Capital Budgeting engrosses the planning of expenditures for assets and the returns from which will be realized in future time periods.'


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