Capital Budgeting Decisions are a process of assessing long-term investments in order to make informed business decisions. It involves assessing the expected costs, revenues and risks associated with a proposed project or investment over its intended life cycle. Effectively, it enables organizations to understand how much money they can put into an investment and how long it will take to recoup that money. With careful capital budgeting decisions, businesses can maximize the potential value of their investments while minimizing risk.