Abstract
A sub-field within economics and finance, the principal concern of capital budgeting is the optimal deployment of funds into capital expenditures. The mainstream of the field, developed essentially in the 1950s and 1960s, consists of two threads of inquiry. (1) How should a company measure the investment worth of a capital expenditure proposal? (2) How should a company set the minimum required rate of return for a capital expenditure proposal?
This chapter was originally published in The New Palgrave: A Dictionary of Economics, 1st edition, 1987. Edited by John Eatwell, Murray Milgate and Peter Newman
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Bibliography
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Solomon, E. (1987). Capital Budgeting. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95121-5_196-1
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DOI: https://doi.org/10.1057/978-1-349-95121-5_196-1
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Publisher Name: Palgrave Macmillan, London
Online ISBN: 978-1-349-95121-5
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