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Which of the following is an example of a capital budgeting decision?
APaying monthly salaries
BBuying raw materials
CCollecting cash from debtors
DInvesting in a new machine or opening a new branch
Answer & Solution
Correct answer: D. Investing in a new machine or opening a new branch
Investing in a new machine or opening a branch commits long-term funds — a capital budgeting decision; the others are routine operations.
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