Capital budgeting is a process for analyzing and selecting appropriate long term investment projects. At time this pursuit represents art more than science; in many cases, factors determining a capital investment project’s ultimate success (general economic conditions, competition, interest rates, government regulations, etc.) are beyond a company’s direct control. Also, the time horizon for many capital projects extends far into the future (10 year or more), so projecting the timing and benefit of these investment activities can be a highly uncertain process.