{"id":10133,"date":"2023-03-10T11:03:20","date_gmt":"2023-03-10T05:33:20","guid":{"rendered":"https:\/\/www.tickertape.in\/glossary\/?p=10133"},"modified":"2023-03-10T11:40:51","modified_gmt":"2023-03-10T06:10:51","slug":"capital-budgeting","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/glossary\/capital-budgeting\/","title":{"rendered":"Capital Budgeting &#8211; Meaning, Objectives, Methods, Pros and Cons"},"content":{"rendered":"\n<p>Businesses can use various methods to determine their <a href=\"https:\/\/www.tickertape.in\/glossary\/what-is-capital-definition-of-capital-types-and-its-importance\/\">capital<\/a> allocation. This helps them plan and organise their resources. Capital budgeting is one of the most popular methods to do this.&nbsp;<\/p>\n\n\n\n<p>But what is capital budgeting? Is it the same as asset allocation? Let\u2019s dig deeper into this concept and understand its various features, methods, and uses.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_22 counter-hierarchy counter-numeric\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">You will Learn About: <\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/glossary\/capital-budgeting\/#Capital-budgeting-meaning\" title=\"Capital budgeting meaning\">Capital budgeting meaning<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/glossary\/capital-budgeting\/#Capital-Budgeting-All-You-Need-to-Know\" title=\"Capital Budgeting &#8211; All You Need to Know!\">Capital Budgeting &#8211; All You Need to Know!<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/glossary\/capital-budgeting\/#Objectives-of-capital-budgeting\" title=\"Objectives of capital budgeting\">Objectives of capital budgeting<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/glossary\/capital-budgeting\/#The-capital-budgeting-process\" title=\"The capital budgeting process\">The capital budgeting process<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/glossary\/capital-budgeting\/#Capital-budgeting-methods\" title=\"Capital budgeting methods\">Capital budgeting methods<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/glossary\/capital-budgeting\/#Significance-of-capital-budgeting\" title=\"Significance of capital budgeting\">Significance of capital budgeting<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/glossary\/capital-budgeting\/#Limitations-of-capital-budgeting\" title=\"Limitations of capital budgeting\">Limitations of capital budgeting<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/glossary\/capital-budgeting\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/glossary\/capital-budgeting\/#FAQs\" title=\"FAQs\">FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Capital-budgeting-meaning\"><\/span><strong>Capital budgeting meaning<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Capital budgeting, also known as <a href=\"https:\/\/www.tickertape.in\/glossary\/investment-meaning-types-how-to-invest-and-savings-vs-investments\/\">investment<\/a> appraisal, refers to the process used by businesses to evaluate long-term capital investments, such as machinery, plants, products, and research and development, and to determine whether or not they should be carried out.<\/p>\n\n\n\n<div class=\"wp-block-uagb-advanced-heading uagb-block-201612bd\"><h2 class=\"uagb-heading-text\"><span class=\"ez-toc-section\" id=\"Capital-Budgeting-All-You-Need-to-Know\"><\/span><strong>Capital Budgeting &#8211; All You Need to Know!<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><\/div>\n\n\n\n<ul>\n<li>Capital budgeting is a process that enables businesses to assess investment opportunities.<\/li>\n\n\n\n<li>It can reveal the risks and opportunities associated with a potential investment, allowing businesses to make rational decisions.<\/li>\n\n\n\n<li>The three main steps in the capital budgeting process are: finding investment opportunities, assessing them, and then selecting the most profitable ones.<\/li>\n\n\n\n<li>Several different methods are used to assess the potential returns that an investment could generate in the future. Four important methods are the Payback Period method, the Net Present Value (NPV) method, the Internal Rate of Return (IRR) method, and the Profitability Index method.<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Objectives-of-capital-budgeting\"><\/span><strong>Objectives of capital budgeting<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" loading=\"lazy\" width=\"400\" height=\"351\" src=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-3.png\" alt=\"\" class=\"wp-image-10135\" srcset=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-3.png 400w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-3-300x263.png 300w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><figcaption class=\"wp-element-caption\">Image source: https:\/\/theinvestorsbook.com\/<\/figcaption><\/figure><\/div>\n\n\n<p>The main objectives of capital budgeting are as follows:<\/p>\n\n\n\n<ol>\n<li><strong>Getting the best returns on investment (ROI)<\/strong><\/li>\n<\/ol>\n\n\n\n<p>Capital budgeting helps businesses select the best investments from a range of potential investments to get the best ROI.<\/p>\n\n\n\n<ol start=\"2\">\n<li><strong>Controlling <a href=\"https:\/\/www.tickertape.in\/glossary\/capital-expenditure\/\">capital expenditure<\/a><\/strong><\/li>\n<\/ol>\n\n\n\n<p>Capital budgeting helps forecast capital expenditure requirements and prepare for them, thereby controlling the total capital expenditure.<\/p>\n\n\n\n<ol start=\"3\">\n<li><strong>Determining where funds should come from<\/strong><\/li>\n<\/ol>\n\n\n\n<p>At any given time, a business can have several sources of funds for investments. In addition to determining how much capital will be needed for a certain investment, capital budgeting also helps determine the source of that capital. Moreover, if a <a href=\"https:\/\/www.tickertape.in\/glossary\/loan-meaning-interest-rates-types-and-repayment\/\">loan<\/a> has to be taken out to fund an investment, capital budgeting also helps strike a balance between the cost of borrowing and the ROI.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"The-capital-budgeting-process\"><\/span><strong>The <\/strong><strong>capital budgeting process<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Typically, the process of capital budgeting consists of the following steps:<\/p>\n\n\n\n<ol>\n<li><strong>Finding potential investment opportunities<\/strong><\/li>\n<\/ol>\n\n\n\n<p>The kind of investments a business might consider depends on what that business does and its ambitions. For instance, a manufacturing company might consider certain new products as potential investments, while a chemical processing company might consider a new plant a potential investment.<\/p>\n\n\n\n<p>In any event, a business must identify investment opportunities aligned with its goals.<\/p>\n\n\n\n<ol start=\"2\">\n<li><strong>Assessing investment proposals<\/strong><\/li>\n<\/ol>\n\n\n\n<p>Once some viable investment opportunities have been identified, the next step is to evaluate the potential of these opportunities, along with various other details. For instance, if a company is considering adding some new products to its set of offerings, then there are several different ways it can do so: it can manufacture them on its own, outsource its manufacturing, or simply purchase them from a third party.<\/p>\n\n\n\n<ol start=\"3\">\n<li><strong>Selecting the most profitable investments<\/strong><\/li>\n<\/ol>\n\n\n\n<p>Once the identified opportunities have been thoroughly assessed, the business has to examine which investments will be the most profitable,&nbsp; given the total capital to spend.&nbsp;<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Capital-budgeting-methods\"><\/span><strong>Capital budgeting methods<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"768\" src=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-2.png\" alt=\"\" class=\"wp-image-10134\" srcset=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-2.png 1024w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-2-300x225.png 300w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-2-300x225@2x.png 600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Image source: https:\/\/www.slideserve.com<\/figcaption><\/figure><\/div>\n\n\n<p>Several methods can be used to carry out capital budgeting and determine whether or not a potential investment is worthwhile. Four important such methods are:<\/p>\n\n\n\n<ol>\n<li><strong>Payback period method&nbsp;<\/strong><\/li>\n<\/ol>\n\n\n\n<p>The \u2018payback period\u2019 refers to the time a potential investment will take to produce enough income to cover the initial investment amount. The potential investment with the shortest payback period will be given priority.<\/p>\n\n\n\n<p><strong>Payback period (in years) = Initial cash investment \/ Annual cash flow<\/strong><\/p>\n\n\n\n<ol start=\"2\">\n<li><strong>Net present value method&nbsp;<\/strong><\/li>\n<\/ol>\n\n\n\n<p>NPV is calculated as the sum of discounted after tax cash flows &#8211; the initial investment.<\/p>\n\n\n\n<p>If the NPV of an investment is positive, it should be considered a good investment. If there are several potential investments with a positive NPV, those with a higher NPV should be favoured. <\/p>\n\n\n\n<ol start=\"3\">\n<li><strong>Internal rate of return method<\/strong><\/li>\n<\/ol>\n\n\n\n<p>This method is also based on the NPV. The internal rate of return (IRR) refers to the discount rate that causes the NPV to be zero. In other words, it is the discount rate at which the discounted cash inflows are equal to the discounted cash outflows.<\/p>\n\n\n\n<p>If the IRR for a given potential investment is greater than its average cost of capital, it is a good investment. Again, if there are multiple potential investments where this is the case, the investments with the highest IRR will be given priority.<\/p>\n\n\n\n<ol start=\"4\">\n<li><strong>Profitability index<\/strong><\/li>\n<\/ol>\n\n\n\n<p>This method involves the use of what is known as the profitability index, which is given by the formula:<\/p>\n\n\n\n<p><strong>Profitability index = Present value of future cash inflows \/ Initial investment<\/strong><\/p>\n\n\n\n<p>If the profitability index is less than 1, then that means that the cash inflows are lower than the initial investment. Conversely, if it is greater than 1, that is a good sign, and the corresponding investment will be considered good.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Significance-of-capital-budgeting\"><\/span><strong>Significance of capital budgeting<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Some of the main advantages of the capital budgeting process are:<\/p>\n\n\n\n<ol>\n<li>It enables companies to rationally assess investment opportunities.<\/li>\n\n\n\n<li>It helps companies control and keep tabs on their capital expenditure.<\/li>\n\n\n\n<li>It clarifies the risks and opportunities available in the market and their consequences for a given company.<\/li>\n\n\n\n<li>If applied correctly, it can help improve a company\u2019s profitability, thus adding more value to shareholders.<\/li>\n\n\n\n<li>It can help prevent companies from overspending on investment or under-utilising their capital.<\/li>\n<\/ol>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Limitations-of-capital-budgeting\"><\/span><strong>Limitations of <\/strong><strong>capital budgeting<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>Many estimates have to be used during this process, including the initial capital that will be required or the future income that will be generated. If these estimates are incorrect, then the business\u2019s performance might suffer at a later point in time.<\/li>\n\n\n\n<li>The time horizons that capital budgeting works with are typically quite long. This increases the negative impact of any incorrect estimates. Moreover, longer time horizons also mean that issues such as unexpected competition and technological or regulatory innovations can have a major impact.<\/li>\n\n\n\n<li>The time value of money is accounted for either by taking out a loan, paying interest, or using one\u2019s own capital. Proper knowledge of discount rates is essential to deciding on the right course of action. Again, estimating these rates is a difficult task that can lead to unpredictable results in the future.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Thus, it should be clear that capital budgeting is important for modern businesses and can help companies make rational and justified decisions regarding the investment opportunities that may be available to them. Understand the process of capital budgeting in detail to make better decisions.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-uagb-faq uagb-faq__outer-wrap uagb-block-71ebe9f4 uagb-faq-icon-row uagb-faq-layout-accordion uagb-faq-expand-first-true uagb-faq-inactive-other-true uagb-faq__wrap uagb-buttons-layout-wrap uagb-faq-equal-height\" data-faqtoggle=\"true\" role=\"tablist\">\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-99116a58\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What is capital budgeting?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Capital budgeting is a process that enables businesses to assess investment opportunities and invest in those that might be most profitable.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-593f36f2\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What are the main objectives of capital budgeting?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">The three main objectives of capital budgeting \u2013 getting the best returns on investment, controlling capital expenditure, and determining where the funds to be invested should come from.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-c2f3f366\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What are the main steps in the capital budgeting process?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">The main steps in capital budgeting are finding potential investment opportunities, assessing investment proposals, and selecting the most profitable investments.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-c7c8f5e7\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What are the main capital budgeting methods?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">The main capital budgeting methods are the Payback Period method, the Net Present Value (NPV) method, the Internal Rate of Return (IRR) method, and the Profitability Index method.<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Businesses can use various methods to determine their capital allocation. This helps them plan and organise their resources. Capital budgeting is one of the most popular methods to do this.\u00a0<\/p>\n","protected":false},"author":96,"featured_media":10137,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[1],"tags":[],"jetpack_featured_media_url":"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1.png","uagb_featured_image_src":{"full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1.png",2086,1086,false],"thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-150x150.png",150,150,true],"medium":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-300x156.png",300,156,true],"medium_large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1.png",768,400,false],"large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-1024x533.png",770,401,true],"1536x1536":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-1536x800.png",1536,800,true],"2048x2048":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-2048x1066.png",2048,1066,true],"authorship-box-avatar":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-150x150.png",150,150,true],"authorship-box-related":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-70x70.png",70,70,true],"post-thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-270x180.png",270,180,true],"contentberg-main":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-770x515.png",770,515,true],"contentberg-main-full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-1170x508.png",1170,508,true],"contentberg-slider-stylish":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-900x515.png",900,515,true],"contentberg-slider-carousel":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-370x370.png",370,370,true],"contentberg-slider-grid-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-554x466.png",554,466,true],"contentberg-slider-grid-b-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-306x466.png",306,466,true],"contentberg-slider-bold-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-150x150.png",150,150,true],"contentberg-grid":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-370x245.png",370,245,true],"contentberg-list":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-260x200.png",260,200,true],"contentberg-list-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-370x305.png",370,305,true],"contentberg-thumb":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-87x67.png",87,67,true],"contentberg-thumb-alt":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/01-1-150x150.png",150,150,true]},"uagb_author_info":{"display_name":"Nikitha","author_link":"%3Fmolongui_byline=true%26mca="},"uagb_comment_info":0,"uagb_excerpt":"Businesses can use various methods to determine their capital allocation. This helps them plan and organise their resources. Capital budgeting is one of the most popular methods to do this.\u00a0","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10133"}],"collection":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/users\/96"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/comments?post=10133"}],"version-history":[{"count":4,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10133\/revisions"}],"predecessor-version":[{"id":10148,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10133\/revisions\/10148"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media\/10137"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media?parent=10133"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/categories?post=10133"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/tags?post=10133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}