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Capital budgeting decisions are considered crucial mainly because they:
Acan be changed at no cost
Bare minor and routine in nature
Cinvolve huge funds, shape long-run earning capacity and are hard to reverse
Daffect only daily cash balances
Answer & Solution
Correct answer: C. involve huge funds, shape long-run earning capacity and are hard to reverse
Capital budgeting decisions involve huge, largely irreversible outlays that determine long-run earning capacity.
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