Which of the following is not a capital budgeting decision?
A) Constructing new studios
B) Replacing old equipment
C) Scrapping obsolete inventory
D) Remodeling an office building

Question

Quizplus · Accepted Answer

Capital budgeting decisions involve major investments in long-term assets, such as constructing new buildings, purchasing new equipment, and remodeling existing facilities. Scrapping obsolete inventory does not involve investing in long-term assets, and is therefore not a capital budgeting decision.

Which of the Following Is Not a Capital Budgeting Decision