or models of most types of firms, or even a part of daily operations. It holds a strategic financial function within a business. One example of a firm type where capital budgeting is possibly a part of the core business activities is with investment banks, as their revenue model or models rely on financial strategy to a considerable degree.

Techniques

Many formal methods are used in capital budgeting, including the techniques such as
* Accounting rate of return
* Average accounting return

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