Which of the following is an objective of capital budgeting quizlet? (2024)

Which of the following is an objective of capital budgeting quizlet?

Answer and Explanation: One of the objectives of capital budgeting is to earn a satisfactory return on investment.

Which of the following is an objective of capital budgeting?

the primary objectives of capital budgeting are to maximize shareholder value, evaluate investment opportunities, manage risk, allocate resources efficiently, and plan for the long-term. By achieving these objectives, businesses can make informed investment decisions and ensure their long-term success.

What is the objectives of capital budgeting?

Selecting the most profitable investment is the main objective of capital budgeting. However, controlling capital costs is also an important objective. Forecasting capital expenditure requirements and budgeting for it, and ensuring no investment opportunities are lost is the crux of budgeting.

Which of the following is the objective of capital budgeting decisions quizlet?

The goal of the capital budgeting decisions is to select capital projects that will decrease the value of the firm.

What is the capital budget quizlet?

Capital budgeting is the process of planning and evaluating expenditures of assets whose cash flows are expected to extend beyond one year. Capital refers to fixed assets used in a firm's production process, and budget is the plan that details the project's cash inflows and outflows into the future.

What are the objectives of capital budgeting Wikipedia?

Capital budgeting in corporate finance, corporate planning and accounting is an area of capital management that concerns the planning process used to determine whether an organization's long term capital investments such as new machinery, replacement of machinery, new plants, new products, and research development ...

Which of the following is not true for capital budgeting?

It includes opportunity cost, actual cost, incremental and relevant cash flows. It does not include sunk costs.

What is an example of a capital budgeting process?

An example of capital budgeting in daily life could be a household considering purchasing a new car. The family would need to estimate the cash inflows and outflows associated with the purchase, such as the initial cost, maintenance expenses, fuel costs, and potential resale value.

What are the principles of capital budgeting?

Capital budgeting typically adopts the following principles: decisions are based on cash flows, not accounting concepts such as net income; the timing of cash flows is critical; cash flows are based on opportunity costs.

Which of the following is the objective of capital budgeting decisions multiple choice?

Answer and Explanation:

One of the objectives of capital budgeting is to earn a satisfactory return on investment. Thus, option (c) is correct.

Which of the following should be included in the capital budgeting process quizlet?

Timing of cash flows, size of the initial investment, and riskiness of the project should all be considered when performing capital budgeting.

Which of the following is a characteristic of the capital budgeting decisions?

Capital Budgeting is characterized by the following features: There is a long duration between the initial investments and the expected returns. The organizations usually estimate large profits. The process involves high risks.

What does capital budgeting deal with ___?

Capital Budgeting is the process of making financial decisions regarding investing in long-term assets for a business. It involves conducting a thorough evaluation of risks and returns before approving or rejecting a prospective investment decision. This process is also known as investment appraisal.

What is capital budgeting primarily concerned with quizlet?

What is capital budgeting primarily concerned with? Evaluating investment alternatives.

What is the capital budget part of?

Answer: Capital budgeting is officially a part of investment decisions. It helps in working on the ideas and projects which in turn helps the company in earning more revenues through the investment.

What are the objectives of capital structure planning?

It maximizes the value of the company and hence the wealth of its owners and minimises the company's cost of capital. Thus, every business enterprise should aim at achieving the optimal capital structure and also tries to maintain it.

Which of the following is not a capital budgeting approach quizlet?

Which of the following is not a capital budgeting method? The net present value method (npv).

What does capital budgeting not deal with?

Capital budgeting helps in making the most optimal decisions. It includes expansion programs, merger decisions, replacement decisions but will not comprise of the inventory related decision making.

Which answer is not important to capital budgeting?

Expert-Verified Answer

option a) "to make as much money for the shareholders as possible" is not the most important consideration in capital budgeting. Answer a) "to make as much money for the shareholders as possible" is not the most important consideration in capital budgeting.

What is the first step in the capital budgeting process?

Identification of Investment Opportunities

The first step of a capital budgeting process is the identification of an investment option. The business considering capital budgeting must find the reason for investment in this step.

What are the three types of capital budgeting?

What are the 3 main general steps to a capital budgeting process?

Which of the following rules is correct for capital budgeting analysis quizlet?

Which of the following rules is CORRECT for capital budgeting analysis? Only incremental cash flows, which are the cash flows that would result if a project is accepted, are relevant when making accept/reject decisions for capital budgeting projects.

Which of the following are the correct order of capital budgeting process?

Which of the following are steps in the capital budgeting process?