Question

becuause of the expenense of applying multipe techniques,managers should use a single budgeting technique to analyze potential capital investments

T/F

Answer 1

False

Every Investment proposal needs different set of calculations to understand its feasibility.

One set of budgeting technique cannot be applied to every potential Capital investment decision.

Long term Investments are analyzed in different way than Short term Investments.

Expense incurred in applying multiple techniques is necessary for a better decision. The financial performance of the Investment depends on these analysis and should be done in a proper way by the managers.