How is a project classification scheme (for example, replacement, expansion into new markets, and so forth) used

Question:

How is a project classification scheme (for example, replacement, expansion into new markets, and so forth) used in the capital budgeting process?

Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...