alleryStart learning →What is the underlying goal of capital budgeting for a firm?
AMaximising the sales volume in every period
BReducing the number of staff on the payroll
CRaising the value of the firm to its shareholders
DMinimising the tax paid in each year
Answer & Solution
Correct answer: C. Raising the value of the firm to its shareholders
Consistent with corporate finance generally, capital budgeting aims to increase the value of the firm for its shareholders.
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