What is the purpose of a capital budget?

The purpose of a capital budget is primarily to outline planned investments in long-term assets or projects. This type of budget aids organizations in assessing the potential returns on investments, planning future expenditures, and making informed decisions regarding which assets to invest in. Capital budgeting typically involves evaluating projects that will require significant financial resources and will contribute to the company's growth over an extended period.

In contrast, the other options relate to different aspects of financial management. For instance, estimating earnings before interest and taxes pertains to financial performance evaluation, while tracking day-to-day operational expenses involves managing the company’s operational budget. Allocating funds for marketing initiatives addresses short-term spending, focusing on promotional activities rather than long-term asset planning. Thus, the correct answer highlights the strategic aspect of capital budgeting in guiding long-term investment decisions.