contestada

Capital budgeting involves? ________.

a. preparing the sales budget for the coming year

b. deciding among various? long-term investments

c. budgeting for yearly operational expenses

d. analyzing various alternatives of financing available to a company

Respuesta :

Capital budgeting involves deciding among various long-term investments . Correct answer: B

It is the process of planning to invest in long-term assets in a way that returns the most profitability to the company.

Net present value (NPV) is the most reliable method for making capital budgeting decisions, used to evaluate physical asset investment projects.