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1.Capital budgeting is for situations in which managers must plan significant outlays for projects that have...

1.Capital budgeting is for situations in which managers must plan significant outlays for projects that have long term implications. T F

2.Capital budgeting is for situations in which large amounts of money usually involved. T F

3.One of the considerations in investment decision considerations is choosing the project with the most profitable return on available funds. T F

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Answer #1

1. The given statement is TRUE as capital budgeting is appropriate for those situations in which there is significant amount of cash outlays involved and these projects have long-term implications.

2. The given statement is TRUE because capital budgeting is applicable for situations in which large amount of money are usually involved as investment is made for the longest time durations.

3. The given statement is TRUE as investment decision consideration is related to selection of the best project which will be having most profitable return on available funds

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