Asked by
Gilberto Gomez
on Dec 01, 2024
Verified
Which of the following will ensure better capital budgeting decisions?
A) Ignoring or rejecting projects from people who may have an interest in their approval
B) Only accepting projects that have been proposed by the top management to reduce unintentional biases
C) Independently verifying technical inputs received by individuals proposing the projects
D) Using both time value based and non-time value based techniques to screen projects when personal interest is suspected
Capital Budgeting
The process of planning and managing a company’s long-term investments in projects or assets.
Technical Inputs
Elements related to the technological aspects of a project or system, including machinery, design parameters, and software requirements that contribute to its overall functionality and efficiency.
Time Value
The idea that money currently in hand is more valuable than an identical sum received later, because of its ability to earn more over time.
- Understand the principles of capital budgeting decisions.
Verified Answer
VH
Learning Objectives
- Understand the principles of capital budgeting decisions.