Which of the following is uncharacteristic of a capital budgeting proposal evaluation process?
A) Buying Treasury bills and bonds for the next six months
B) Replacing computer equipment with upgraded models
C) Buying new equipment to increase capacity of the production line
D) Building a new factory, warehouse, or office building

Question

Quizplus · Accepted Answer

Buying Treasury bills and bonds for the next six months is an investment decision and not a capital budgeting proposal, which typically involves evaluating long-term projects that require significant investments. The other options - replacing computer equipment, buying new equipment to increase production capacity, and building a new factory, warehouse, or office building - are all examples of capital budgeting proposals that involve evaluating the costs and benefits of long-term investments.

Which of the Following Is Uncharacteristic of a Capital Budgeting