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The Role of Capital Budgets for Business

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Capital budgeting is planning for the use of large amounts of funds to obtain future returns. So the capital budget will always be related to investment projects, and plays a role as an analysis technique or evaluating investment projects, as well as helping business people to assess the feasibility of long-term returns. Apart from that, the capital budget can also help business people to choose one of the two best projects.
 
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