This document provides an introduction and overview of capital budgeting. It defines capital budgeting as a firm's formal process for acquiring and investing in capital assets through long-term planning. It deals with evaluating investment proposals for long-term projects and allocating scarce financial resources. The document discusses the nature, importance, and process of capital budgeting, including identifying and screening proposals, evaluating alternatives, setting priorities, approving budgets, implementing projects, and reviewing performance. It also covers different types of capital budgeting decisions and factors that influence capital expenditure choices.