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Capital budgeting is the process of planning and evaluating long-term investments made by a business. It involves deciding whether a company should invest its funds in projects such as purchasing new machinery, developing computer systems, expanding production capacity, replacing old equipment, adopting new technology, or establishing a new business unit. Since these investments generally involve large amounts of money and provide benefits over several years, proper evaluation is necessary before making a decision. In a computer-based business environment, capital budgeting can also be used to evaluate investments in enterprise software, information systems, ________ ______ ___ _______ _______ ____ _________ _________ ______ _________.
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