Capital budget

(redirected from Capital Expenditure Budgets)
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Capital budget

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The company is announcing the plan well before year-end to ensure its mining subsidiaries and joint ventures will be able to incorporate the required changes into their 2020 capital expenditure budgets, accounting for the revised production levels in 2021.
There are a number of considerations including age of asset, legislative regulations/changes, emerging consumer preferences and competitive positioning in the market that influence the way in which capital expenditure budgets are directed.
"This only goes to illustrate the resilience of our business in times where public sector capital expenditure budgets continue to be under pressure." The company, which employs 140 staff across three sites, supplies specialist industrial computers, electronic components, antennas, microwave systems and battery power solutions to the electronics market.
The majority (57%) are likely to fund such additional software purchases from operational expenditure budgets; the remainder are likely to fund them from capital expenditure budgets. And 73% of respondents are likely to make additional software purchases to boost efficiency from existing operational expenditure budgets.
"We found that 95% of the retailers surveyed are cutting their capital expenditure budgets for 2009 by at least 10-25%, expecting the challenging environment to continue in the year ahead.

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