Capital budget decisions are financial decisions that businesses make in order to maximize profits or reduce costs in the long run. These decisions involve the purchase of long-term assets, such as buildings, equipment, land and technologies. As part of the decision process, businesses analyze the expected returns from any potential project and weigh them against the cost of financing the venture. The ultimate goal is to select a course of action that results in maximum value for the company. By carefully analyzing capital investment possibilities, businesses can ensure that their decisions will pay off both now and in the future.