The document discusses capital budgeting, which refers to long-term planning for proposed capital expenditures and their financing. Capital budgeting involves a firm's formal process of acquiring and investing in capital assets. It deals with evaluating long-term investment projects and allocating scarce financial resources among market opportunities. The nature of capital budgeting is that it involves huge investments in fixed assets for long terms that cannot be easily reversed or withdrawn. It is an important tool for financial management and business success depends on how resources are utilized through capital budgeting.