Chartered Accountant (CA) Question:

What is capital budgeting?

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Answer:

Capital budgeting is a process by which we decide the best alternative for the organisation in terms of revenue amongst various available alternatives..
A project is vaible is if inflow of fund is atleast equal to the outflow of fund, this is also called as break even piont. But in capital budgeting we calculate outlfol nd inflow of vairous available alternative and choose the best one for the company

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