An example of a capital budgeting decision is deciding

An example of a capital budgeting decision is deciding: Multiple Choice how many shares of stock to issue. whether or not to purchase a new machine for the production line. how to refinance a debt issue that is maturing. how much inventory to keep on hand. how much money should be kept in the checking account.

Answer

Capital budgeting techniques are used in investing decisions of the projects. Net present value, internal rate of return, payback period and discounted payback period. These are most useful for deciding we should purchase a machine or not. Whether we should accept a project or not.

Hence, correct option is “whether or not purchase a new machine for the production line”

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