In an equipment capital budgeting decision, recovering the original investment means that the ______.

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11-08-2022
Social Studies

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In an equipment capital budgeting decision, recovering the original investment means that the ______.

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RajarshiG RajarshiG · Answer 1 · 2022-08-20T06:58:39+02:00

In the equipment capital budgeting decision, recovering original investment means that the investment has generated enough cash inflows completely

Capital budgeting is the process a business undertakes to examine potential major projects or investments. Construction of a new plant or a big investment needed in an outside venture are examples of projects that would require capital budgeting before they got approved or rejected.

As part of capital budgeting, a company might got assess a prospective project's for lifetime cash inflows and also outflows to determine if the potential returns that would be generated meet the sufficient target benchmark. The capital budgeting process is also caleed as investment appraisal.

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