Capital budgeting is an important part of the business planning process. It’s the process by which businesses assess potential projects and determine their expected return based on the amount of money to be invested. By carefully evaluating and analyzing potential investments, businesses can make informed decisions about how to best use their financial resources to achieve their goals. The capital budgeting process involves considering a multitude of factors such as the cost and timing of the project, future cash flows and risks associated with the investment. Ultimately, the goal is to maximize returns on investment, while minimizing risk.