capital budgeting
Definition
The process of determining which potential long-term projects are worth undertaking, by comparing their expected discounted cash flows with their internal rates of return.
Use capital budgeting in a sentence
“ You should try to be good at capital budgeting so that you know exactly where your money will go to. ”
“ The capital budgeting exercise was useful in providing detailed information that is helpful in making the best decisions possible for us. ”
“ Mary came to the capital budgeting meeting prepared; she was sure she could convince the partners virtual vacations were going to be the next big trend. ”
