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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Capital budgeting  

Definition 1.

The process of choosing the firm's long-term capital assets.
 

Definition 2.

The process of determining whether or not projects such as building a new plant or investing in a long-term venture are worthwhile.
 

Definition 3.

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.
 
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