Capital budgeting projects are investments made with the expectation of generating future returns that outweigh the initial capital outlay. These investments can include anything from building new facilities and equipment, to developing new products, to improving existing systems and processes. By engaging in a thorough analysis of potential investments beforehand, businesses can better determine which ones are most likely to provide value for the company over the long run. This type of strategic planning helps guide important decisions and create the foundation for sustained success.