Introduction to Capital Budgeting

What you’ll learn to do: Discuss capital budgeting

A car on the processing line.

Capital budgeting is used to describe how managers may deal with huge buying decisions, such as new equipment, new product lines or a new manufacturing facility. Since there might be quite a few options, it is important to evaluate each to determine the most efficient and effective path for a company to choose.

How well a manager can make these kinds of decisions will have a big impact on the financial health, long term, of the organization. We will discuss each of the methods that can be used to evaluate these kinds of decisions.


Did you have an idea for improving this content? We’d love your input.

Improve this pageLearn More