Answer / bindu

Capital budgeting (or investment appraisal) is the planning
process used to determine whether a firm's long term
investments such as new machinery, replacement machinery,
new plants, new products, and research development projects
are worth pursuing. It is budget for major capital, or
investment, expenditures.[1]

Many formal methods are used in capital budgeting,
including the techniques such as

Accounting rate of return
Net present value
Profitability index
Internal rate of return
Modified internal rate of return
Equivalent annuity

Answer / snehal

the long term investment decisions of the firm is generally known as the capital budgeting or capital expenditure decision.

Answer / rudradeva

process of analyzing,appraising,deciding investment on long
term projects is known as capital budgeting

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