alleryStart learning →The real value of capital budgeting lies mainly in doing what?
AReducing tax
BEstimating sales
CRanking projects
DPaying dividends
Answer & Solution
Correct answer: C. Ranking projects
Firms have many rewarding projects, so ranking them lets the best be funded first.
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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?Which technique expresses NPV as an annualised cash flow?When may one project have several possible IRRs?For mutually exclusive projects, choosing the highest IRR may select a project with