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 ?
What is clear from the 2011 Capital Planning Study--conducted by Appleseed Partners and Financial Executives Research Foundation (FERF)--is that millions of dollars of strategic decision-making is taking place with insufficient tools to provide for proper scenario analysis and investment analytics across the company.
Recommendation: To enhance transparency and allow for more informed decision making related to VA's real property priorities, the Secretary of Veterans Affairs should provide the full results of VA's SCIP process and any subsequent capital planning efforts, including details on the estimated cost of all future projects, to Congress on a yearly basis.
The assessment data provides baseline information and the foundation for the analysis of needs regarding capital planning, including cataloging deferred-maintenance needs.
A Facilities department may run a CMMS while a business office keeps track of capital planning with a different type of software.
As a key component in company investment governance, efforts in developing and employing capital planning processes will eventually pay off in improved business performance.
Long-term care facilities must learn to embrace a rigorous capital planning reserve strategy.
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.
the leading provider of end-to-end solutions for facilities capital planning and asset management, announced today that it has completed a detailed facility condition assessment for the Museum of Science, Boston.
Yorkville's financial position is strong as growth has been factored into budgeting and capital planning.
Funding Allows VFA to Expand, Innovate and Maintain Leadership Position in Capital Planning Software Market
Industry-leading Facilities Capital Planning Software Provider Boasts 36 Percent Growth in Software License Revenue in Ranking of World's Largest Software Companies
Contract Bolsters VFA's Position as Leading Provider of Facilities Capital Planning Solutions for the Federal Market

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