capital budgeting

The process by which an organization appraises a range of different investment projects with a view to determining which is likely to give the highest financial return. The approaches adopted include net present value, the internal rate of return, the profitability index, and the payback period method

Big dictionary of business and management. 2014.

Look at other dictionaries:

  • Capital budgeting — (or investment appraisal) is the planning process used to determine whether a firm s long term investments such as new machinery, replacement machinery, new plants, new products, and research and development projects are worth pursuing.Many… …   Wikipedia

  • Capital Budgeting — The process in which a business determines whether projects such as building a new plant or investing in a long term venture are worth pursuing. Oftentimes, a prospective project s lifetime cash inflows and outflows are assessed in order to… …   Investment dictionary

  • capital budgeting — capital investment appraisal; = investment appraisal The process by which an organization appraises a range of different investment projects with a view to determining which is likely to give the highest financial return. The approaches adopted… …   Accounting dictionary

  • capital budgeting — noun The budgeting process in which a company plans its capital expenditure (the spending on assets of long term value) …   Wiktionary

  • Capital budgeting — The process of choosing the firm s long term capital assets. The New York Times Financial Glossary …   Financial and business terms

  • capital budgeting — The process of choosing the firm s long term assets. Bloomberg Financial Dictionary …   Financial and business terms

  • capital budgeting — planning the allocation of funds of a business and holding to that plan …   English contemporary dictionary

  • capital budgeting — Fin the selection, appraisal, and monitoring of a business’s fixed assets …   The ultimate business dictionary

  • Capital structure — Gearing ratio redirects here. For the mechanical concept, see gear ratio. Finance Financial markets …   Wikipedia

  • Capital Improvement Plan — A Capital Improvement Program, or CIP, is a short range plan, usually four to six years, which identifies capital projects and equipment purchases, provides a planning schedule and identifies options for financing the plan. Essentially, the plan… …   Wikipedia

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