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What Is Capital Budgeting?

By Kristi WaterworthUpdated Feb 22, 2025 at 11:16 AM

Key Points

  • Capital budgeting helps companies decide on viable and profitable projects using thorough evaluation methods.
  • Investors gain from capital budgeting as it ensures companies make financial decisions that benefit long-term value.
  • Methods like discounted cash flow and payback period assess project viability and financial returns efficiently.

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