This document discusses capital expenditure (CAPEX) decisions and the capital budgeting process. It outlines that CAPEX decisions relate to long-term investments whose benefits will be realized in the future. The capital budgeting process involves estimating cash flows, assessing risk, determining discount rates, and evaluating projects using methods like net present value, internal rate of return, and payback period. Key factors in CAPEX decisions are the large expenditures, long-term consequences, irreversible nature, risk, and strategic significance.