Capital Budgeting refers to the long term financial decision regarding the acquisition and disposal of non-current assets. It is the decision regarding the selection of less risky and most profitable investment alternatives from the available one. It applies modern Investment evaluation techniques like net present value, internal rate of return, profitability index, and discounted pay back period to eveluate the profitability of the investment.
Capital Budgeting refers to the long term financial decision regarding the acquisition and disposal of non-current assets. It is the decision regarding the selection of less risky and most profitable investment alternatives from the available one. It applies modern Investment evaluation techniques like net present value, internal rate of return, profitability index, and discounted pay back period to eveluate the profitability of the investment.