Capital budgeting involves:

A) planning and justifying how capital dollars are spent on long- term projects.
B) planning and justifying how capital dollars are spent on short- term projects.
C) saving for future investments.
D) evaluating past business projects.

Capital budgeting involves planning and justifying how capital dollars are spent on long-term projects, such as the purchase of new equipment or the construction of a new building. It is a critical process for businesses to ensure that they are investing their resources wisely and generating the highest possible return on investment. The other choices (B, C, and D) do not accurately describe capital budgeting.