In a producing economy - capital budgeting functions with a 4-8% allocation rate, to meet with the measure of what it calls growth, but that become relative to what it sheds and how it improves efficiency and what more of market shares it capture or how it influences market to their product or service. the other alternative is flat budget, with no capital expenditure growth. but you take all that into account based on deprecation gain as well as all factors, as to which areas will be flat and within areas will get that budget growth. its a numbers game.. but it is extremely market sensitive and system modification relevant.. because if it has to make tech modification, that changes the dynamic of how the budget allocations will be managed and in the fast changing world. they don't alway get it right.. and then loss shows up on the books. Capital reserve is what helps some.. to manage and maintain cash flow until they can make the adjustment.. big corporation are slow to change and the more intricate their operations the more inflexible they are.