what is capital budgeting 
capital budgeting is a process that businesses use to evaluate potential major projects or investments building a new plant or taking a large stake in an outside venture are examples of initiatives that typically require capital budgeting before they are approved or rejected by management as part of capital budgeting a company might assess a prospective project s lifetime cash inflows and outflows to determine whether the potential returns it would generate meet a sufficient target benchmark the capital budgeting process is also known as investment appraisal investopedia lara antal