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Capital Budgeting Decisions
The most important function of a finance manager is the efficient allocation of its capital. The investment decision of a firm is termed as capital budgeting or capital expenditure decision. Capital budgeting is the process of planning used to determine whether organization current funds can be invested in the long term assets like new plants, new products in anticipation of an expected flow of benefits over a series of years (I.M. Pandey, 2005).

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