capital budgeting


capital budgeting
= capital investment appraisal; = investment appraisal
The process by which an organization appraises a range of different investment projects with a view to determining which is likely to give the highest financial return. The approaches adopted include net present value, the internal rate of return, the profitability index, the accounting rate of return, and the payback period method.

Accounting dictionary. 2014.

Look at other dictionaries:

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