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Why do companies spend a great deal of money to determine their CAPEX budgets?
Wiki User
∙ 11y ago
It is important for companies to determine their CAPEX budgets annually. The CAPEX budget helps a company to identify how much money can be put into a project and whether or not it will pay off in the long run. It can also help determine whether or not the company can expand or introduce another product. If the company is in a partnership, wants to leave a partnership, or is considering entering one the CAPEX budget can project the gain or loss that will occur with its decision. Basically it is worth it for any company to spend money determining their CAPEX budget because in the long run it will pay off, you have to spend money to make money.
Wiki User
∙ 11y ago
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