Question

Examples of how a non-profit could use capital-budgeting techniques to make better-informed decisions?

Answer 1

Capital budgeting helps in decision making about acquiring new assets or working with the current assets.
It mainly works on the long term investment which would be required by any organisation. There are also various capital budgeting techniques which helps in Planning and decision making. These techniques are used by the organisation's management to make better and informed decisions.

Fot non-profit entity they could use by the capital budgeting technique of Payback period which determines the period in which the cash invested would be recovered back.
Net present value technique could also help in decision making as this technique determines the present value of the investment and desired/estimated income.
There are also various other techniques such as discounted payback period, profitability index, internal rate of return etc.

As every profit making entity uses all these techniques, a non-profit entity could also use these techniques.