Is interest expense should be included in capital budget?

Interest expense is generally not included in a capital budget because capital budgeting focuses on the costs directly associated with acquiring and managing long-term assets, such as equipment or infrastructure. Instead, interest expense is typically considered a financing cost and is accounted for separately in financial statements. However, some companies may choose to consider the impact of financing costs when evaluating project viability, but this is not standard practice in capital budgeting.