Capital Budgeting is simply an analysis and evaluation of investment projects that normally produce benefits over a number of years. The Capital Budgeting Decision is important, because a firms future success will often depend on current investment decisions. Typical projects include the acquisition of plant and equipment, a marketing strategy, or the opening of a new retailing outlet. So all these new projects are expected to yield future benefits in the future, and an investment must be made by the business in order to benefit the rewards of the project. in this case analyzing the projects return against the amount invested, is very important, as the business needs to know the value they getting out of investing in the project. Analyzing the project and its future benefits is known as Capital Budgeting.

in this course, we will be looking at effective ways in which a business can use to analyse a project, and see which techniques can a business use in order to effectively analyse proposed projects