Capital Expenditure Budgeting

Capital Expenditure Budgeting is the process businesses use to plan and evaluate long-term investments in assets like buildings, machinery, or technology. It involves estimating costs, potential benefits, and risks to decide whether these investments will help the company grow or improve operations. The goal is to allocate funds effectively, ensuring that the money spent will generate future value, such as increased earnings or efficiency. This planning helps companies prioritize projects, manage cash flow, and make informed decisions about significant financial commitments.