alleryStart learning →Why does the amount of money matter in capital budgeting?
ASmall sums are reversed at no cost
BOutlays have no effect on later years
CLarge sums shape the firm's profitability
DReturns are fixed and always certain
Answer & Solution
Correct answer: C. Large sums shape the firm's profitability
Because a large sum is involved, the decision strongly influences the profitability of the firm.
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