Business management glossary/Capital budgeting

Capital budgeting

General

Process to evaluate and prioritize long-term investments like equipment or facilities. Capital budgeting techniques such as NPV, IRR, and payback period help decision-makers compare projects and allocate limited funds effectively.

Related terms

Capital expenditure (CapEx)Benefits administration Operating expense (OpEx)Forecasting Professional Services Automation (PSA)Zero-based budgeting

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