Capital Budgeting: The process of evaluating and selecting long-term investments that are aligned with the organization's strategic objectives and are expected to generate a positive return.
Depreciation: The systematic allocation of the cost of a tangible asset over its useful life, reflecting the gradual decline in the asset's value due to usage, age, or obsolescence.
Return on Investment (ROI): A performance measure that evaluates the efficiency of an investment by comparing the net return to the cost of the investment, expressed as a percentage.