In the present paper, an engineering official of a large company goes over the considerations which he feels are significant in the budgeting of expenditures for plant equipment and other capital items, and reports on practice as he see it. The considerations described are not necessarily applicable to the company division with which he is now associated. He notes that equipment leasing is sometimes an alternative to capital investment and comments briefly on its serviceability of formulae for evaluating the desirability of capital projects.