Capital budgeting is a financial tool used to plan long-term investments in a determined period and it ables preventing financial risk and asseverate the returns of investments budgeting which involves i+D, renovation and implication.

Capital budgeting is a financial tool used to plan long-term investments in a determined period.

It ables preventing financial risk and asseverate the returns of investments budgeting which involves i+D, renovation and implication.

By the way, on a financial part, it shows either we need to grant money or use our own capital

On one hand, it is important to point out that the business should take into account all the projects and opportunities that enhance the shareholder value.

On the other hand, the amount of capital available given in any period of time is limited so that the management needs techniques to determinate which protect would have yield the most return.

Techniques such as internal rate of return, net present value, and payback period are employed in creating capital budgets.