Which of the following is not a capital budgeting decision?

A) The amount of debt versus the amount of equity which should be obtained.
B) The currency and exchange rates of cash inflows and outflows.
C) The amount of cash flows which will be required or obtained.
D) The timing of all cash inflows and outflows.
E) The risk associated with the expected cash inflows.

Question

Kamryn Riggle · Accepted Answer

Final Answer : A, Explanation :  Capital budgeting decisions are concerned with the investment in long-term assets and their financing. The choice between debt and equity (A) pertains to the capital structure decision, not capital budgeting. Choices B, C, D, and E all relate to considerations in evaluating capital budgeting decisions, such as assessing cash flows, their timing, currency exchange impacts, and associated risks.

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