Capital Budgeting Decisions

“Capital Budgeting is the process where the financial managers of an organization determines and evaluate the worth of a long term investment project/proposal.” It is also called investment appraisal.
In other words, Capital Budgeting decisions are the long term investment decisions of a firm which affect its survival, growth and profitability in the future. However, there is no particular definition of long term time horizon. It can be different for different organizations.