capital budget

  

Definition

Plan for raising large and long-term sums for investment in plant and machinery, over a period greater than the period considered under an operating budget. Techniques such as internal rate of return, net present value, and payback period are employed in creating capital budgets.

Use capital budget in a sentence

  • You should always try and have as much of a capital budget as you can to take advantage of any good deals that may arise.

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  • We had a capital budget idea in our minds and we were going to go through with it and raise a lot of money.

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  • The capital budget had been determined to be sufficiently planned and adequately maintained as to be with in the accepted range.

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