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Capital Budgeting refers to the process by which organizations make long-term investment decisions, typically involving significant financial outlays for assets that will generate future cash flows over an extended period. The goal is to evaluate projects or investments based on their expected returns, risks, and alignment with overall business objectives, in order to allocate resources effectively and maximize shareholder value. Capital budgeting decisions often involve complex financial analysis and risk management considerations, as well as strategic and operational factors that can impact the success of an investment. By carefully evaluating potential projects using rigorous analytical tools and techniques, organizations can improve their chances of making sound investment decisions that will generate sustainable growth and long-term profitability.