A capital budgeting decision is Deciding whether or not to open a new store.
Capital investments or Capital budgeting are long-term investments in which the assets involved have useful lives of multiple years.
For example: constructing a new production facility and investing in machinery and equipment are capital investments.
Capital budgeting is a method of estimating the financial viability of a capital investment over the life of the investment. It identifies the cash inflows and outflows.
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