Capital budgeting includes the evaluation of which of the following?
A)size of future cash flows only
B)size and timing of future cash flows only
C)timing and risk of future cash flows only
D)risk and size of future cash flows only
E)size,timing,and risk of future cash flows

Question

Quizplus · Accepted Answer

Capital budgeting is a process used by companies to evaluate potential long-term investments, such as the purchase of new equipment or facilities, or the development of new products or services. The evaluation involves analyzing the potential future cash flows that the investment will generate, which includes size, timing, and risk. Therefore, the best choice(s) is E, which includes all three factors.

Capital Budgeting Includes the Evaluation of Which of the Following