capital budgeting

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Capital budgeting

The process of choosing the firm's long-term assets.

Capital Budget

A plan for a company's capital expenditures. Capital expenditures are payments made over a period of more than one year. They are used to acquire assets or improve the useful life of existing assets; an example of a capital expenditure is the funding to construct a factory. Making a capital budget must account for the potential profitability of the plans involved. Calculating the net present value or the internal rate of return are two methods for determining a capital budget.

capital budgeting

Corporate evaluation of long-term investment proposals, generally by means of discounting estimated future cash flows.

capital budgeting

the process of planning and controlling CAPITAL expenditure within a firm. Capital budgeting involves the search for suitable investment opportunities; evaluating particular investment projects; raising LONG-TERM CAPITAL to finance investments; assessing the COST OF CAPITAL; applying suitable expenditure controls to ensure that investment outlays conform with the expenditures authorized; and ensuring that adequate cash is available when required for investments. See INVESTMENT APPRAISAL, BUDGETING.

capital budgeting

the planning and control of CAPITAL expenditure within a firm. Capital budgeting involves the search for suitable INVESTMENT opportunities; evaluating particular investment projects; raising LONG-TERM CAPITAL to finance investments; assessing the COST OF CAPITAL; applying suitable expenditure controls to ensure that investment outlays conform with the expenditures authorized; and ensuring that adequate cash is available when required for investments. See INVESTMENT APPRAISAL, DISCOUNTED CASH FLOW, PAYBACK PERIOD, MARGINAL EFFICIENCY OF CAPITAL/INVESTMENT.
References in periodicals archive ?
Capital planning and stress testing for HSBC North America may impact HSBC USA's future capital and liquidity.
Conversely, those that do beautiful 3-D modeling are likely light on the capital planning and cost analysis applications.
The agencies' capital planning processes generally link to their strategic goals and objectives, and they all consider a range of alternatives to bridge an identified performance gap--including nonownership options where appropriate.
Using a transparent capital planning process and strengthening the corporate role can achieve superior capital productivity.
Capital planning aside, developing such an assessment is a useful exercise in its own right.
This would encompass adopting a long-range view of capital planning and the targeting of long-term growth benefits.
facility to help manage its capital planning initiatives.
the leading provider of end-to-end solutions for facilities capital planning and asset management, announced today the completion of a $3 million Series D investment from current investors.
the leading provider of end-to-end solutions for facilities capital planning and asset management, has been named for the fourth consecutive year to the Software 500, Software Magazine's list of the world's foremost software and services providers.
Contract Bolsters VFA's Position as Leading Provider of Facilities Capital Planning Solutions for the Federal Market
the leading provider of end-to-end solutions for facilities capital planning and asset management, today announced that the Judicial Council of California Administrative Office of the Courts (AOC) will be using VFA to assess the condition of state court facilities transferred to the AOC's responsibility.
SAN FRANCISCO -- SPL WorldGroup, a leading provider of Enterprise Asset Management software, and RIVA Online, a provider of real-time infrastructure valuation analysis tools, today announced the formation of a strategic partnership to integrate RIVA's strategic long-range capital planning capabilities with the SPL Enterprise Asset & Work Management (EAM) solution.

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