Which of the following is not a capital budgeting decision?
A) The amount of debt versus the amount of equity which should be obtained.
B) The currency and exchange rates of cash inﬂows and outﬂows.
C) The amount of cash ﬂows which will be required or obtained.
D) The timing of all cash inﬂows and outﬂows.
E) The risk associated with the expected cash inﬂows.

Question

Quizplus · Accepted Answer

Capital budgeting decisions involve evaluating potential long-term investments, such as whether a company should invest in a new plant or piece of equipment. The amount of debt versus equity, currency and exchange rates, amount of cash flows, timing of cash flows, and risk associated with cash inflows and outflows are all factors considered in capital budgeting decisions. However, the choice between debt and equity is not directly related to a specific investment decision, but rather a financing decision.

Which of the Following Is Not a Capital Budgeting Decision