Capital Budgeting is the process of evaluating investment opportunities, such as purchasing machinery, by calculating the Net Present Value (NPV). This involves: Estimating the cost of the machine. Projecting annual cash inflows from its operation. Accounting for annual savings and depreciation. Using a discount rate to find the present value of future cash flows. A positive NPV indicates a potentially profitable investment. It's a strategic tool for making informed decisions on long-term investments. #BBA #Financialmanagement #TU #bachelorNepal #4thsem Tutor: Kumar Shrestha ________________________________________________ Struggling with BBA exams in Nepal? Sorry Gurudev has you covered! Sorry Gurudev is your one-stop online resource for BBA students in Nepal. This is the official channel of Sorry Gurudev You can join our telegram channel for notes and updates. Telegram Link: https://t.me/sorrygurudev #machinereplacement #capitalbudgetting #Sdc #sorrygurudev #macrsdepreciation #Terminalcashflow #initialcashoutlay #Npv