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15.10: Introduction to Capital Budgeting

  • Page ID
    46006
  • 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.

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    • What is Capital Budgeting?. Authored by: Freedom Learning Group. Provided by: Lumen Learning. License: CC BY: Attribution
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