Capital budgeting is the process in which a company determines whether to make an investment in new product or machinery by determining its future cash flows and benefits based on the current net present value of the company. The benefit of capital budgeting helps in the process of decision making, determine the future growth of business and facilitate monitoring and transfer of both expenditure and information. During the process of capital budgeting, decision rules are set by the leaders, making it necessary for all leaders to understand investment appraisals (Abor, 2017). Leaders play important role in determining the future growth of the business. With respect that capital budgeting plays the same role as leaders