The process of identifying, evaluating, and implementing a firm's investment opportunities is referred to as:
A) capital expenditures
B) initial cash flow analysis
C) long-term forecasting
D) capital budgeting

Question

Quizplus · Accepted Answer

The process of identifying, evaluating, and implementing a firm's investment opportunities is referred to as capital budgeting. Capital budgeting involves analyzing potential projects and deciding which ones to pursue based on their potential return on investment and alignment with the company's strategic goals. This process typically includes methods such as net present value analysis, internal rate of return analysis, and payback period analysis.

The Process of Identifying, Evaluating, and Implementing a Firm's Investment