Capital budget

(redirected from Planned Capital Expenditure Programs)
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Capital budget

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.
References in periodicals archive ?
BRK, IDR 'AAA', Negative Outlook), which include future equity infusions from and earnings retention facilitated by BRK to support large planned capital expenditure programs at MidAmerican Energy Co.
In the short run AE Supply may not be able to contribute dividends to its parents or further cancel or suspend planned capital expenditure programs to preserve liquidity.