alleryStart learning →Capital budgeting is best described as the process of
APreparing daily cash plans
BEvaluating long-term investments
CSetting product prices
DAuditing annual accounts
Answer & Solution
Correct answer: B. Evaluating long-term investments
It decides whether major long-term outlays such as machinery or new plants are worth financing.
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Related questions
Why may payback overlook a valuable long-life project?Rs 1,000 is invested, returning Rs 500 at the end of years 1 and 2. Payback?Energy payback period is the time over which what equals energy spent?Which of these is a simplified capital budgeting method?Surplus cash from a firm's present and past earnings is called what?The real value of capital budgeting lies mainly in doing what?Which technique expresses NPV as an annualised cash flow?When may one project have several possible IRRs?