Answer Posted / sanmilan
Capital Budgeting is a Testing Tool or Decision making tool
to analyze the viability of any Particular Project with
respect to the Cash Outs and Inflows. It plays a vital role
in Decision Making. In simple words, It gives answers for
how much to Invest, on what stages, when the investments can
be realized with profits with the help of Managerial tools
like IRR,Pay Back Period Calculations etc.
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