A capital budget highlights a firm's spending plans for major assets, such as property, buildings, and equipment.

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A capital budget is a financial plan that details a company's long-term investment strategy, including its expenditures on capital assets like land, buildings, and equipment. The budget outlines the expected costs and expected benefits of acquiring these assets over a specified period, typically several years. The purpose of a capital budget is to ensure that a company has the financial resources necessary to invest in these significant projects and that those investments will generate sufficient return on investment to benefit the business in the long run.

A Capital Budget Highlights a Firm's Spending Plans for Major