Budgeting that involves decisions such as whether to buy or lease equipment or build a new factory is referred to as:_______

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12-09-2022
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Budgeting that involves decisions such as whether to buy or lease equipment or build a new factory is referred to as:_______

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rafikiedu02 rafikiedu02 · Answer 1 · 2022-09-14T17:12:49+02:00

'Budgeting that involves decisions such as whether to buy or lease equipment or build a new factory is referred to as capital budgeting.

Capital budgeting and investment evaluation in corporate finance is the value of an organization's long-term investments (new machinery, machine replacements, new facilities, new products, R&D projects, etc.) to be funded in cash through company financing The planning process used to determine whether Capitalization structure (debt, equity, or retained earnings). This is the process of allocating resources for major capital or capital expenditures. [1] Consistent with our holistic approach to corporate finance[2], the underlying goal is to increase the value of the company for its shareholders.

Capital budgeting is important because it creates accountability and measurability. Companies that seek to invest resources in projects without understanding the associated risks and rewards will be viewed as irresponsible by their owners and shareholders.

Learn more about Capital budgeting https://brainly.in/question/39571889

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