Capital budgeting techniques are used to evaluate a firm's fixed asset investments which provide the basis for the firm's earning power and value.

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Capital budgeting techniques, such as payback period, net present value (NPV), internal rate of return (IRR), and profitability index, are used to determine the potential profitability and feasibility of a long-term investment in fixed assets. These investments play a crucial role in the success and value of a firm, as they often require a significant financial commitment and impact the firm's ability to generate future cash flows.

Capital Budgeting Techniques Are Used to Evaluate a Firm's Fixed