reduces the risk of error in these decisions. However, because most major
capital projects have long useful lives, the decisions to undertake them recur
infrequently. As a result, officials often do not have recent experiences to
guide them in making decisions about projects this year. The consequent
risk of error is higher for these decisions, which is a good reason to have a
special process for capital budgeting to ensure that decisions on major projects
are fully considered before they are made.