Strategic Evaluation and Financial Impact Analysis of Capital Budgeting Practices in Contemporary Corporate Environments

Capital budgeting is a critical driver of organizational growth, yet its strategic integration remains underexplored. This study examines the alignment of capital budgeting techniques with long-term corporate objectives, assessing their financial impact on profitability and operational efficiency. Findings reveal that firms employing advanced evaluation methods (e.g., NPV, real options) alongside strategic metrics such as ESG alignment and innovation potential achieve superior financial outcomes. However, persistent gaps include inadequate post-audit reviews, data limitations, and sector-specific disparities in implementation. The research advocates for hybrid models combining quantitative rigor with strategic foresight, emphasizing cross-functional collaboration and predictive analytics. Managerial and societal implications highlight the role of ethical investments in sustainable development. Future research should explore AI-driven budgeting and cross-industry adaptations.