Capital budgeting is the process of planning and evaluating long-term investments made by a business. It involves deciding whether a company should invest its funds in projects such as purchasing new machinery, developing computer systems, expanding production capacity, replacing old equipment, adopting new technology, or establishing a new business unit. Since these investments generally involve large amounts of money and provide benefits over several years, proper evaluation is necessary before making a decision. In a computer-based business environment, capital budgeting can also be used to evaluate investments in enterprise software, information systems, servers, cybersecurity infrastructure, cloud computing facilities, and other technological assets. The main purpose of capital budgeting is to determine whether a proposed investment is financially worthwhile. It considers the initial investment, expected future cash inflows, operating costs, useful life of the project, and the time value of money. A good capital budgeting decision helps businesses use their financial resources efficiently and supports profitability and long-term growth. Two important methods of capital budgeting are the Payback Period Method and the Net Present Value Method. The Payback