Capital budgeting decisions generally:
A) Have long-term effects on a firm.
B) Are of short-duration.
C) Are easy to revise once implemented.
D) Focus solely on whether or not a particular asset should be purchased.
E) Have minimal effects on a firm's operations.

Question

Quizplus · Accepted Answer

Capital budgeting decisions are significant for a firm because they typically involve large expenditures, have long-term effects on the firm's operations, and are not easily reversible. These decisions can influence the firm's growth, profitability, and strategic direction for years to come.

Capital Budgeting Decisions Generally