Capital budget(redirected from Capital Expenditure Budgets)
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Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
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