The process in which a business determines whether projects such as building a new plant or investing in a long-term venture are worth pursuing.
In the public sector, the term is often exclusively associated with infrastructure investments – plant and equipment. It is more properly associated with all policy choices that have significant, long-term consequences. The purchase of a central computer system, establishing or expanding public utility services, and implementing new public transportation systems are examples of capital asset acquisitions that are considered by public sector organizations.
One of the most vital functions of the public sector entity is to construct, maintain, and develop the public works infrastructure. Capital investments including roadways, bridges, sanitary sewers, water mains, and other essential public facilities.
